I need help with my project for Principles of Accouting II
I have listed the instructions, guidelines and examples that were sent to us from the teacher
The business I choose is: Academy Sports
PRINCIPLES OF ACCOUNTING II ACC 1020 Fall, 2021 FINANCIAL ANALYSIS PROJECT TOTAL POINTS = 110 DUE DATE = November 7, 2021 This project is designed to assess your ability to analyze and interpret financial statements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http://quote yahoo.com GET THE RECENT STOCK QUOTE FOR YOUR COMPANY AND CLICK ON THE CHARTS BAR. NEXT CLICK ON THE 5 YEAR CHART PRINT THIS PAGE. ACCT 1020 Financial Accounting Analysis Rubric Evaluation Fails to meet Criteria Expectations Meets Expectations Exceeds Expectations 10-13) (14-19) (20-22) Score Statement of Cash Flows Analysis Incorrect or inappropriate data used Correct data used with minimal errors Correct data used without any errors Ratio Analysis Incorrect or inappropriate data used for ratio calculation; vague and minimal knowledge of financial ratios Correct data used Correct data used with minimal without any errors, mostly errors, or accurate assumption(s) interpretation of made for financial ratios unavailable data; accurate interpretation of financial ratios Correct data used Correct data used with minimal without any errors errors Vertical Analysis Incorrect or inappropriate data used Stock Quote and Chart Incorrect or inappropriate data used Correct data used with minimal errors Correct data used without any errors Format Not in order and no verification of calculations Organized and clear explanation of calculations Organized and detailed descriptions of all calculations 49 9 Statement of Cash Flow Analysis Looking at Walmart's statement of cash flow for 2017 it is evident the comparties financial team used the indirect method, because the statement starts with net income. In 2017 the net income was 14,285,000, which is about a milion less than the 2016 year and about 3 milion less than in 2015. Under cash for operations Walmari's net cash for 2017 was 31,530,000 which was about 4 milion higher than 2016 and about 3 million higher than 2015. Looking deeper into operating costs it can be noted that accounts payable was twice as much in 2017 as it was in 2016. Well looking into the investment Category 2017 shows a cash loss of 13,987.000 for or 2017. This is about 3 milion higher than the 2015 loss and about 2 milion higher than the 2015 loss. However, after looking closer in 2017 Walmart used money to purchase available for sale securities, and investments and business acquisitions that they did not do the previous two years. For the financial section of the statement in 2017 the company was at a foss of almost 19 milion dollars which is almost 3 million more than in 2016 and almost 4 millon more than 2015. Looking deeper into the statement it can be noted that they paid halt as much debt as the previous year but bought twice as much company stock. The operating activities show the company trying to create more cash flow so the can investmore and purchase pecunies. They have also started buying back stock which could show they are doing wel Ratio Analysis Current Ratio: Total current assets/Total current liabilities 2016: 80.23964,619 = 93 2017: 57,68966,92836 The change from 2016 10 2017 was not favorable Cash Ratio: Cash and cash equivalents/Total current liabilities 2016: 8.70564 619 13 2017: 6,867/66,928 = 10 "The change between 2015 and 2017 us not favorable Acid-test ratio (Cash including cash equivalents + Short-term investments + Net current receivables Total current liabilities 2016: (8.705.0+5,624164,619 = 22 2017 (6,867 +0+5,835)66,928 = 19 *The change from 2016 to 2017 is not favorable Dod Working Capital: Current assets Current liabilities 2016: 60,239 - 64619 (380) 2017: ( The charge tram 2016 in 2017 mpt tavaratie. i's favorable flo Inventory turnover: Cost of goods sold Average merchandise Inventory (AMI) 2016: 360.984M4,806 8.00 AMI (44.469 + 45,14112 2017: 36125643,757.80 = 0,26 AMI: (43,046 + 44,46972 *The change from 2016 to 2017 is favorable Rate on return of common stockholders' equity (Net income. Preferred dividends Average common stockholders' equity (ACSE) 2016 (479614-0181.774-5.65 ACSE: (35,611 + 35,93717 2017 (317-082,073 = 5.96 ACSE: (30,535 + 83,61192 "The change from 2016 to 2017 is favorable Format 10 Excellent job!! Debt ratio: Total abilities/Total assets 2016: 115 970/99,581 581 = 58.19% 2017. 118 2001 98,825 506 = 59.5% *The change from 2016 10 2017 was not favorable. Debt to equity ratio Tocilable Total equity 2016: 115,97063,611139 2017: 110,290700635147 "The change from 2016 to 2017 is not favorable LASA flow Amlapis - I feed numbers hom of, inn.ora Kellent job - presentation ! 49 2016 2015 $47.000- 39.7% 754.000-2 = 35% Current ratio is the company's ability to pay current abilities from current sets Total Current Assets Total Care Labies 2016 2015 2.73 = 2.6 1,817.000 1DS10 2,134,000 2,183.000 LFRID = 1.1 The results here indicate that in 2016 Dr. Pepper Snapple Inc. were able to pay off more debt in 2016 than in 2015. The change in ratio was favorable The results are favorable in 2016 Dr. Pepper was able to distribute 4.7% more to common shareholders. This suggest Dr. Pepper is safe to invest in The method used to prepare the statement of cash flows was the Indirect method. When serving net income compared with cash flow from operating activities, the cash flow is almost $100,000 higher. This suggest that the company at carings are high quality. After analyzing the investing activities, it appears that Dr. Pepper Snapple Inc. is not investing as much as they did in 2015 but they are staying relatively ble because it is not a drastic decrease. The biggest change has occurred in the financing activities. In 2015, they were paying out dividends and paying off long term dates, but in 2016 they have received cash flow, causing the assets to increase Rate of return on total assets is the success a company has in using its assets to earn income and according to investopedia, anything over SX (for large companies is considered good Net Income Interest Expense Average Total Assets 2016: 2015 2004147000 10.7% = 4.000117010 = 10.3% 9.791,000+ 0.000-2 (8.860,000 45,265,000-2 Dr. Pepper Snapple Group, Inc. (DPS) Balance Sheet Vertical Analysis 2015 Current Assets Short Term Iniments nya Na ve Het Receivables 625,000 3000/4.869,000 7.30 Inventary 209.000 200.000.000 2.36 Other Current Assets 69,000 $9,000/6.500.000 07 Total Current Aasta 1217.000 1.817,000/8.800,000 20.50 % Assets Long Term Investments 31.000 31,000/ REA DOO 0.35 8,369,000 Property Plant and Equipment 16.000 1.156,000/8,000 1.156.000 1.156,000/6, B12 000 13.30 % Goodwill 2,988,000 2,980,000/6.369.000 33.70% Intangible Ait 2.661.000 2.663,000/8.800.000 30% Arts Accumulated Amortization ne la Other Assets 350.000 10% Deferred Long Term Asset Charges 64000 64.00078 380,000 0.72% Total Assets 3,269,000 8,809 D00/1.269,000 100% 100% Current Liabilities Accounts Payable 304,000 304 DOCUM 9.000 3.40 Short Current long term debet 500.000 50700018 969.000 5.20 Other currentes 772.000 772,000,000 3.ON Total Current Liabilities 150.000 1.512,000/8, 669.000 1780 lub Long Term Debt 2,675.000 2.75,000,000 3240 Others 200.000 260,000/1.100.000 2.90% Dufred Long Term Hability Charpes 1,968.000 199,000/800,000 12.20% |Tauty Total Stockholderequity 2,183,000 2 183,000/8,269,000 24OX Total abilities and SE 8,800,000 RSDO/200,000 2008 Mala Green indicates the numbers and tegal 100% These calculations that their rate of return on total assets was favorable, but not a significant increase Debit ratio is the portion of assets financed with debt. Total Liabilities Total Assets 2016 2015 7.657.000 78 6,636.000 0.791,000 8.869,000 Based on these results, the company is approaching 1 which means the company uses more debt. Typically, a company should not surpass as they could be having financial troubles, and could lead into bankruptcy. However, large companies such as Dr. Pepper inc. can be in a good spot financially even with higher numbers = 75 Dr. Pepper Snapple Group, Inc. (DPS) Balance Sheet Vertical Analysis 2016 Current Assets Short Term Investments n/a na Net Receivables $ 646,000.00 646,000/9,791,000 Inventory $ 202,000.00 202,000/9,791,000 Other Current Assets $ 101,000.00 101,000/9,791,000 Total Current Assets $ 2,736,000.00 2,736,000/9,791,000 Assets Long Term Investments $ 23,000.00 23,000/9,791,000 Property Plant and Equipment $1,138,000.00 1,138,000/9,791,000 Goodwill $ 2,993,000.00 2,993,000/9,791,000 Intangible Assets $ 2,656,000.00 2,656,000/9,791,000 Accumulated Amortization n/a n/a Other Assets $ 183,000.00 183,000/9,791,000 Deferred Long Term Asset Charges $ 62,000.00 62,000/9,791,000 Total Assets $ 9,791,000.00 9,791,000/9,791,000 n/a 6.60% 2.06% 1.03% 28.00% 0.23% 11.62% 30.60% 27.13% n/a 1.8796 0.63% 100% 307,000/9,791,000 10,000/9,791,000 734,000/9,791,000 1,051,000/9,791,000 3.14% 0.10% 7.50% 10.73% Current Liabilities Accounts Payable $ 307,000.00 Short/Current long term debt $ 10,000.00 Other current liabilities $ 734,000.00 Total Current Liabilities $ 1,051,000.00 Liabilities Long Term Debt $ 4,468,000.00 Other Liabilities $ 209,000.00 Deferred Long Term Liability Charges $ 1,929,000.00 Equity Total Stockholder equity $ 2,134,000.00 Total liabilities and SE $9,791,000.00 4,468,000/9,791,000 209,000/9,791,000 1,929,000/9,791,000 46% 2.13% 19.70% 21.80% 2,134,000/9,791,000 9,791,000/9,791,000 100% Note: Green Indicates the numbers used to equal 100% PRINCIPLES OF ACCOUNTING II ACC 1020 Fall, 2021 FINANCIAL ANALYSIS PROJECT TOTAL POINTS = 110 DUE DATE = November 7, 2021 This project is designed to assess your ability to analyze and interpret financial statements. ASSIGNMENT: OBTAIN THE RECENT FINANCIAL REPORTS OF A PUBLICLY TRADED COMPANY OF YOUR CHOOSING, INCLUDING THE FOLLOWING STATEMENTS 1. INCOME STATEMENT 2. BALANCE SHEET 3. CASH FLOW STATEMENT YOU MAY OBTAIN THESE REPORTS FROM ANY MEANS YOU CHOOSE 1. ANNUAL REPORTS OF STOCK YOU OWN 2. VIA THE INTERNET YOU WILL PERFORM THE FOLLOWING ANALYSIS: 1. WRITE A PARAGRAPH ANALYZING THE STATEMENT OF CASH FLOWS IDENTIFYING THE FOLLOWING ITEMS: THE METHOD USED TO PREPARE THE STATEMENT CASH FROM OPERATIONS CASH FROM INVESTMENT CASH FROM FINANCING . PERFORM A TYPED RATIO ANALYSIS USING THE RATIOS IN YOUR BOOK IN CHAPTER 14 EXHIBIT 13. PICK 4 LIQUIDITY OR EFFICIENCY 2 SOLVENCY. AND 4 PROFITABILITY MARKET RATIOS AND CONDUCT RATIO ANALYSIS FOR THE CURRENT YEAR AND THE PRIOR YEAR AND INDICATE WHETHER THE CHANGE IN THE RATIO WAS FAVORABLE OR UNFAVORABLE. (INCLUDE ALL CALCULATIONS AND FORMULAS) PERFORM A TYPED COMMON SIZE ANALYSIS OF 1 OF THE COMPANY'S FINANCIAL STATEMENTS USING EXCEL. LASTLY, ACCESS THE INTERNET USING EITHER FIREFOX OR MICROSOFT EXPLORER WEB BROWSERS AND GET TO THE FOLLOWING ADDRESS: http://quote yahoo.com GET THE RECENT STOCK QUOTE FOR YOUR COMPANY AND CLICK ON THE CHARTS BAR. NEXT CLICK ON THE 5 YEAR CHART PRINT THIS PAGE. ACCT 1020 Financial Accounting Analysis Rubric Evaluation Fails to meet Criteria Expectations Meets Expectations Exceeds Expectations 10-13) (14-19) (20-22) Score Statement of Cash Flows Analysis Incorrect or inappropriate data used Correct data used with minimal errors Correct data used without any errors Ratio Analysis Incorrect or inappropriate data used for ratio calculation; vague and minimal knowledge of financial ratios Correct data used Correct data used with minimal without any errors, mostly errors, or accurate assumption(s) interpretation of made for financial ratios unavailable data; accurate interpretation of financial ratios Correct data used Correct data used with minimal without any errors errors Vertical Analysis Incorrect or inappropriate data used Stock Quote and Chart Incorrect or inappropriate data used Correct data used with minimal errors Correct data used without any errors Format Not in order and no verification of calculations Organized and clear explanation of calculations Organized and detailed descriptions of all calculations 49 9 Statement of Cash Flow Analysis Looking at Walmart's statement of cash flow for 2017 it is evident the comparties financial team used the indirect method, because the statement starts with net income. In 2017 the net income was 14,285,000, which is about a milion less than the 2016 year and about 3 milion less than in 2015. Under cash for operations Walmari's net cash for 2017 was 31,530,000 which was about 4 milion higher than 2016 and about 3 million higher than 2015. Looking deeper into operating costs it can be noted that accounts payable was twice as much in 2017 as it was in 2016. Well looking into the investment Category 2017 shows a cash loss of 13,987.000 for or 2017. This is about 3 milion higher than the 2015 loss and about 2 milion higher than the 2015 loss. However, after looking closer in 2017 Walmart used money to purchase available for sale securities, and investments and business acquisitions that they did not do the previous two years. For the financial section of the statement in 2017 the company was at a foss of almost 19 milion dollars which is almost 3 million more than in 2016 and almost 4 millon more than 2015. Looking deeper into the statement it can be noted that they paid halt as much debt as the previous year but bought twice as much company stock. The operating activities show the company trying to create more cash flow so the can investmore and purchase pecunies. They have also started buying back stock which could show they are doing wel Ratio Analysis Current Ratio: Total current assets/Total current liabilities 2016: 80.23964,619 = 93 2017: 57,68966,92836 The change from 2016 10 2017 was not favorable Cash Ratio: Cash and cash equivalents/Total current liabilities 2016: 8.70564 619 13 2017: 6,867/66,928 = 10 "The change between 2015 and 2017 us not favorable Acid-test ratio (Cash including cash equivalents + Short-term investments + Net current receivables Total current liabilities 2016: (8.705.0+5,624164,619 = 22 2017 (6,867 +0+5,835)66,928 = 19 *The change from 2016 to 2017 is not favorable Dod Working Capital: Current assets Current liabilities 2016: 60,239 - 64619 (380) 2017: ( The charge tram 2016 in 2017 mpt tavaratie. i's favorable flo Inventory turnover: Cost of goods sold Average merchandise Inventory (AMI) 2016: 360.984M4,806 8.00 AMI (44.469 + 45,14112 2017: 36125643,757.80 = 0,26 AMI: (43,046 + 44,46972 *The change from 2016 to 2017 is favorable Rate on return of common stockholders' equity (Net income. Preferred dividends Average common stockholders' equity (ACSE) 2016 (479614-0181.774-5.65 ACSE: (35,611 + 35,93717 2017 (317-082,073 = 5.96 ACSE: (30,535 + 83,61192 "The change from 2016 to 2017 is favorable Format 10 Excellent job!! Debt ratio: Total abilities/Total assets 2016: 115 970/99,581 581 = 58.19% 2017. 118 2001 98,825 506 = 59.5% *The change from 2016 10 2017 was not favorable. Debt to equity ratio Tocilable Total equity 2016: 115,97063,611139 2017: 110,290700635147 "The change from 2016 to 2017 is not favorable LASA flow Amlapis - I feed numbers hom of, inn.ora Kellent job - presentation ! 49 2016 2015 $47.000- 39.7% 754.000-2 = 35% Current ratio is the company's ability to pay current abilities from current sets Total Current Assets Total Care Labies 2016 2015 2.73 = 2.6 1,817.000 1DS10 2,134,000 2,183.000 LFRID = 1.1 The results here indicate that in 2016 Dr. Pepper Snapple Inc. were able to pay off more debt in 2016 than in 2015. The change in ratio was favorable The results are favorable in 2016 Dr. Pepper was able to distribute 4.7% more to common shareholders. This suggest Dr. Pepper is safe to invest in The method used to prepare the statement of cash flows was the Indirect method. When serving net income compared with cash flow from operating activities, the cash flow is almost $100,000 higher. This suggest that the company at carings are high quality. After analyzing the investing activities, it appears that Dr. Pepper Snapple Inc. is not investing as much as they did in 2015 but they are staying relatively ble because it is not a drastic decrease. The biggest change has occurred in the financing activities. In 2015, they were paying out dividends and paying off long term dates, but in 2016 they have received cash flow, causing the assets to increase Rate of return on total assets is the success a company has in using its assets to earn income and according to investopedia, anything over SX (for large companies is considered good Net Income Interest Expense Average Total Assets 2016: 2015 2004147000 10.7% = 4.000117010 = 10.3% 9.791,000+ 0.000-2 (8.860,000 45,265,000-2 Dr. Pepper Snapple Group, Inc. (DPS) Balance Sheet Vertical Analysis 2015 Current Assets Short Term Iniments nya Na ve Het Receivables 625,000 3000/4.869,000 7.30 Inventary 209.000 200.000.000 2.36 Other Current Assets 69,000 $9,000/6.500.000 07 Total Current Aasta 1217.000 1.817,000/8.800,000 20.50 % Assets Long Term Investments 31.000 31,000/ REA DOO 0.35 8,369,000 Property Plant and Equipment 16.000 1.156,000/8,000 1.156.000 1.156,000/6, B12 000 13.30 % Goodwill 2,988,000 2,980,000/6.369.000 33.70% Intangible Ait 2.661.000 2.663,000/8.800.000 30% Arts Accumulated Amortization ne la Other Assets 350.000 10% Deferred Long Term Asset Charges 64000 64.00078 380,000 0.72% Total Assets 3,269,000 8,809 D00/1.269,000 100% 100% Current Liabilities Accounts Payable 304,000 304 DOCUM 9.000 3.40 Short Current long term debet 500.000 50700018 969.000 5.20 Other currentes 772.000 772,000,000 3.ON Total Current Liabilities 150.000 1.512,000/8, 669.000 1780 lub Long Term Debt 2,675.000 2.75,000,000 3240 Others 200.000 260,000/1.100.000 2.90% Dufred Long Term Hability Charpes 1,968.000 199,000/800,000 12.20% |Tauty Total Stockholderequity 2,183,000 2 183,000/8,269,000 24OX Total abilities and SE 8,800,000 RSDO/200,000 2008 Mala Green indicates the numbers and tegal 100% These calculations that their rate of return on total assets was favorable, but not a significant increase Debit ratio is the portion of assets financed with debt. Total Liabilities Total Assets 2016 2015 7.657.000 78 6,636.000 0.791,000 8.869,000 Based on these results, the company is approaching 1 which means the company uses more debt. Typically, a company should not surpass as they could be having financial troubles, and could lead into bankruptcy. However, large companies such as Dr. Pepper inc. can be in a good spot financially even with higher numbers = 75 Dr. Pepper Snapple Group, Inc. (DPS) Balance Sheet Vertical Analysis 2016 Current Assets Short Term Investments n/a na Net Receivables $ 646,000.00 646,000/9,791,000 Inventory $ 202,000.00 202,000/9,791,000 Other Current Assets $ 101,000.00 101,000/9,791,000 Total Current Assets $ 2,736,000.00 2,736,000/9,791,000 Assets Long Term Investments $ 23,000.00 23,000/9,791,000 Property Plant and Equipment $1,138,000.00 1,138,000/9,791,000 Goodwill $ 2,993,000.00 2,993,000/9,791,000 Intangible Assets $ 2,656,000.00 2,656,000/9,791,000 Accumulated Amortization n/a n/a Other Assets $ 183,000.00 183,000/9,791,000 Deferred Long Term Asset Charges $ 62,000.00 62,000/9,791,000 Total Assets $ 9,791,000.00 9,791,000/9,791,000 n/a 6.60% 2.06% 1.03% 28.00% 0.23% 11.62% 30.60% 27.13% n/a 1.8796 0.63% 100% 307,000/9,791,000 10,000/9,791,000 734,000/9,791,000 1,051,000/9,791,000 3.14% 0.10% 7.50% 10.73% Current Liabilities Accounts Payable $ 307,000.00 Short/Current long term debt $ 10,000.00 Other current liabilities $ 734,000.00 Total Current Liabilities $ 1,051,000.00 Liabilities Long Term Debt $ 4,468,000.00 Other Liabilities $ 209,000.00 Deferred Long Term Liability Charges $ 1,929,000.00 Equity Total Stockholder equity $ 2,134,000.00 Total liabilities and SE $9,791,000.00 4,468,000/9,791,000 209,000/9,791,000 1,929,000/9,791,000 46% 2.13% 19.70% 21.80% 2,134,000/9,791,000 9,791,000/9,791,000 100% Note: Green Indicates the numbers used to equal 100%
