Question
PLEASE PROVIDE THE EXCEL SHEETS: Using the annual report and excel file of financial statements for AutoNation , prepare the following items. Use the spreadsheet
PLEASE PROVIDE THE EXCEL SHEETS:
Using the annual report and excel file of financial statements for AutoNation, prepare the following items. Use the spreadsheet provided and modify it with your calculations. Just be sure to change the file name to something with your name in it. You must use spreadsheets (and formulas) for this assignment.
Common Size Balance Sheet
Prepare a spreadsheet with common size balance sheets for the years ended December 31, 2019 and 2018. For 2019, each line item should be shown as a percentage of total assets on December 31, 2019. Likewise, for 2018, each item should be shown as a percentage of total assets on December 31, 2018. In your calculations, round each percentage to three digits. For example if cash as a percentage of total assets is .054029834, your answer should be shown as 5.4%. These numbers on the financial statements are rounded to the nearest million, so it is a bit silly to show calculations with more precision than the underlying data.
Common Size Income Statement
Prepare a spreadsheet with common size income statements for the 2019 and 2018 fiscal years. You do not need to do 2017. In this case, your denominator will be Revenues. Again, remember to round.
Horizontal Analysis of both financial statements
Prepare a horizontal analysis of the balance sheet and income statement, showing the percentage change from 2018 to 2019 (the dollar amounts, not the percentages you calculated in the common size statements). This is calculated as follows:
(2019 amount 2018 amount)/ 2018 amount
Thus, each line item on the balance sheet and income statement should show a percentage increase or decrease. A negative number, or decrease, can be formatted to show in parentheses, which is the preferable notation in accounting circles.
Ratios
Calculate all* of the ratios listed in exhibit 14-26, "Summary of Analytical Measures," for AutoNation in 2019 (you do not need to do ratios for 2018).
* You also do not need to calculate EPS. It is shown on the income statement
In any place where the formula calls for an average, use the 2019 number plus the 2018 number divided by 2.
The listed items should be submitted in an Excel file.
Auto Nation simplified financial statements.xlsx
Finally, a similar ratio analysis will be provided after the first chat for Penske Automotive Group. Compare your results from AutoNation with Penske on a separate Word document. Your analysis must address at similarities ad differences between the companies related to liquidity, credit risk, and profitability, as well as what the differences mean. You will not receive full credit if you discuss dollars instead of ratios, and you must interpret, not just list, your results.
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