I need (3) answered prepare ratio analysis for 2018,2017, and 2016 for lowes and Home Depot

1 Financial Reporting and Analysis Group Project ACCT6351 Spring 2020 *** Warning: The financial ratios presented in the sample projects are different from what required in the current projects. Therefore, you CANNOT directly follow the samples. Some modification is needed. The specific purposes of the projects are: 1. Apply to actual companies the knowledge and analytical techniques learned from our course. 2. Perform vertical and horizontal analysis and various ratios on the financial statements. 3. Compare the calculated results with competitor and across different years. 4. Summarize the analyses and make investment recommendations. You will be analyzing the following firms: a. Home Depot (HD) b. Lowes (LOW). Please check the blackboard for the financial statements. 2 Project The required tasks are detailed below: (1) Prepare vertical common-size income statements and balance sheets for both companies. Note: Use Total Sales and Total Assets as the denominators for income statement and balance sheet, respectively. Compute for 2018, 2017, and 2016. (2) Prepare horizontal analysis on income statements and balance sheets for both companies. (3) Prepare ratio analyses (for 2018, 2017, and 2016) for both companies. You should include the following ratios in your computations: Profitability ratios o Gross Profit margin o Profit margin o Return on assets o Return on equity Productivity o Inventory Turnover o days inventory outstanding o PPE Turnover o Asset Turnover Solvency o Debt-to-equity o Times interest earned o Return on Financial leverage Liquidity o Current Ratio o Quick Ratio o Working capital (3) Comment on the analytical results of the two companies based on your work in excel. In addition to contrasting the ratios between the companies, you should interpret the numbers and make suggestions as to why the ratio of one company might be higher/lower than the other. Note: General discussions of the ratios are given in our textbook, which will help you structure your comments. (4) Write a conclusive summary on the firms you have studied. Based upon your conclusions, recommend the better performing firm for potential investment. Your conclusions should be based upon, and specifically reference, the analyses prepared in this report. 3 Report Format Requirements: A. Report body requirements: 1. Cover page. List the title of the project, your name, and semester/year. 2. Main body. Use the following sequence for report content: a. Introduction to the two companies and to the purpose of the report b. Analytical section. This should include all your numerical analyses. This is where you will discuss the results of, comments on, and conclusions about, the Common Size, horizontal, and the ratio analyses for both companies. c. Comparisons of companies and all other analysis (observations and/or interpretations). (You may combine b and c if you wish, as long as both are well covered.) d. Conclusions and recommendation for investment. 3. References. List all major reference sources. 4. Appendices. Include tables and graphs of your numerical analyses. For reference convenience, assign a title to each separate item, such as Table 1, Exhibit 1, etc. B. Typesetting requirements: 1. Use size 12 font. Times New Roman is preferred. 2. Double space between lines. 3. Number pages. 4. One inch on all sides. C. Miscellaneous The total report should be approximately 20 pages. Notes Plagiarism will not be tolerated. Evidence of plagiarism will result in a grade of F to the course and may be subject to appropriate disciplines. A portion of your grade will be assessed based on the overall report quality, clarity, format, and cohesiveness. A FREE RIDER in the group will not be tolerated. However, to report an alleged free rider, you should send me a formal written complaint. You should carefully manage your group over the semester to ensure that no teammate will take the chance of turning into a 4 free rider. Try to contact/manage your teammates frequently and inform me if any member is not willing to participate the group work so we can address this issue ASAP. A free rider will receive his/her group project grades solely based on what he/she has contributed to the projects. If there is a free-rider in your group or a member drops the class, the rest of the group members are still expected to submit a COMPLETE paper.

--Cal 3 (Rayos Kimberly L).x. Download Save to OneDrive Insert Formulas Data Review View Help Tell me what you want to do Editing v Arial V 10 B Brav Av Currency V f. 1778 F G H NOTE: 2015 BALANCE SHEET INFORMATION SHOULD BE USED ONTOS 2018 2012 2016 2015 es cash equivalents svet ise inventores Tentats rent assets perty and equipment 51.778 $1936 $13.925 $890 $18.529 $22,375 $2.252 5847 $44,003 $3,595 $1.952 $12.748 5638 $18.933 522.075 $2,275 $1,246 $44.529 $2.538 $2,029 $12.549 5608 $17,724 521.914 $2093 235 $42.956 $2,216 $1,890 $11,809 5569 $16.484 522 191 $2,102 $41,973 Liabilities Hem de unts payable meses and related expenses stus payable $1.339 $7.755 $1.506 5656 ST 51 559 $7.244 51 640 $710 57 000 $1.484 $508 1 G $350 56.565 $1,515 5476 1 K 51 Ratios Project Re: Project o hop for us Salar % 2 3 4 5 6 7 8 9 W E R T Y O P Un IL IL SD F G H J Xic V BN pause . Home Insert Formulas Data Review View Help Editing Tell me what you want to do Arial v V V 10 ar Av BI ... 00 Currency f. 1778 D F ales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Other accrued expenses Total current liabilities Long-term debt, excluding current installments Deferred Income taxes Other long term liabilities 3 Total liabilities 9 Common stock, par value 50 05, authorized 10,000 shares, issu 30 Paid in capital 31 Retained emings 32 Accumulated other comprehensive loss 33 Treasury stock, al cost 677shares at February 3, 2019 and 622 34 Total stockholders' (deficit) equity 35 Totallites and stockholders' equity $656 $1782 $11 S $2,6 516,716 $26,807 5491 $1857 $45,881 $89 $10,578 $46 423 -$772 558.196 $1,878 $44,003 $520 $1 805 554 02 $2.150 $10,194 524,267 $440 $2.174 $43,075 $89 $10,192 $39.935 -$566 548.196 $1,454 $44,529 5508 $1,669 $25 $542 $2,195 $14,133 $22.9 5296 $1,855 $38,633 $88 $9.787 $35,519 -5867 $40.194 $4,333 $42.966 $476 $1,566 $34 $77 $1,941 $12,524 $20,789 $379 $1,965 $35,657 588 $9.347 530,973 $898 $33 194 $6.316 $41,973 Balance Sheet income Statement Ratios Ratio 0 Home Depot Project Re: Project Type here to search % 2 **3 5 6 7 00 9 W E RT .Y U 1 s D' F G H J : 1 . os Kimberly L- Outlook - Personal - Microsoft Edge s://outlook.office.com/mail/deeplink Home Depot-Cal_3 (Rayos Kimberly L).x... Download Save to OneDrive Home Insert Formulas Data Review View Help Tell me what you want to de Arial V10 B V . y General fo 2017 2018 2016 $108,203 71,043 37,160 $100,904 66,548 34 356 $94,595 62,282 32,313 shares in Millions. Sin Millions Income Statement Net Sales Cost sales Gross profit Operating expenses Selling general and administrative Depreciation and amortization Impairment loss 0 Total operating expenses 11 Operating income 12 Interest and other income) expense: 13 interest and Investment income 14 Interest expense 15 Other 16 Interest and other net 17 Earnings before provision for income taxes Provision for income taxes Net earnings 19 513 1.870 247 21,630 15.530 17,864 1.811 0 19,675 14,681 17.132 1.754 0 18,886 13,427 -74 1 057 -93 1.051 16 974 14,556 3.435 $11.121 983 13,698 5.068 $8,630 -36 972 0 936 12.491 4534 $7.957 Income Statement Rose Project 7 * --Cal 3 (Rayos Kimberly L).x. Download Save to OneDrive Insert Formulas Data Review View Help Tell me what you want to do Editing v Arial V 10 B Brav Av Currency V f. 1778 F G H NOTE: 2015 BALANCE SHEET INFORMATION SHOULD BE USED ONTOS 2018 2012 2016 2015 es cash equivalents svet ise inventores Tentats rent assets perty and equipment 51.778 $1936 $13.925 $890 $18.529 $22,375 $2.252 5847 $44,003 $3,595 $1.952 $12.748 5638 $18.933 522.075 $2,275 $1,246 $44.529 $2.538 $2,029 $12.549 5608 $17,724 521.914 $2093 235 $42.956 $2,216 $1,890 $11,809 5569 $16.484 522 191 $2,102 $41,973 Liabilities Hem de unts payable meses and related expenses stus payable $1.339 $7.755 $1.506 5656 ST 51 559 $7.244 51 640 $710 57 000 $1.484 $508 1 G $350 56.565 $1,515 5476 1 K 51 Ratios Project Re: Project o hop for us Salar % 2 3 4 5 6 7 8 9 W E R T Y O P Un IL IL SD F G H J Xic V BN pause . Home Insert Formulas Data Review View Help Editing Tell me what you want to do Arial v V V 10 ar Av BI ... 00 Currency f. 1778 D F ales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Other accrued expenses Total current liabilities Long-term debt, excluding current installments Deferred Income taxes Other long term liabilities 3 Total liabilities 9 Common stock, par value 50 05, authorized 10,000 shares, issu 30 Paid in capital 31 Retained emings 32 Accumulated other comprehensive loss 33 Treasury stock, al cost 677shares at February 3, 2019 and 622 34 Total stockholders' (deficit) equity 35 Totallites and stockholders' equity $656 $1782 $11 S $2,6 516,716 $26,807 5491 $1857 $45,881 $89 $10,578 $46 423 -$772 558.196 $1,878 $44,003 $520 $1 805 554 02 $2.150 $10,194 524,267 $440 $2.174 $43,075 $89 $10,192 $39.935 -$566 548.196 $1,454 $44,529 5508 $1,669 $25 $542 $2,195 $14,133 $22.9 5296 $1,855 $38,633 $88 $9.787 $35,519 -5867 $40.194 $4,333 $42.966 $476 $1,566 $34 $77 $1,941 $12,524 $20,789 $379 $1,965 $35,657 588 $9.347 530,973 $898 $33 194 $6.316 $41,973 Balance Sheet income Statement Ratios Ratio 0 Home Depot Project Re: Project Type here to search % 2 **3 5 6 7 00 9 W E RT .Y U 1 s D' F G H J : 1 . os Kimberly L- Outlook - Personal - Microsoft Edge s://outlook.office.com/mail/deeplink Home Depot-Cal_3 (Rayos Kimberly L).x... Download Save to OneDrive Home Insert Formulas Data Review View Help Tell me what you want to de Arial V10 B V . y General fo 2017 2018 2016 $108,203 71,043 37,160 $100,904 66,548 34 356 $94,595 62,282 32,313 shares in Millions. Sin Millions Income Statement Net Sales Cost sales Gross profit Operating expenses Selling general and administrative Depreciation and amortization Impairment loss 0 Total operating expenses 11 Operating income 12 Interest and other income) expense: 13 interest and Investment income 14 Interest expense 15 Other 16 Interest and other net 17 Earnings before provision for income taxes Provision for income taxes Net earnings 19 513 1.870 247 21,630 15.530 17,864 1.811 0 19,675 14,681 17.132 1.754 0 18,886 13,427 -74 1 057 -93 1.051 16 974 14,556 3.435 $11.121 983 13,698 5.068 $8,630 -36 972 0 936 12.491 4534 $7.957 Income Statement Rose Project 7 *