1. Select a publicly held company of your choice of interest to you (or you may use the financial statements of your company but you must provide that data source if you use this option).
2. Obtain a copy of the companys core balance sheet, income statement, and statement of cash flows for the most recent 2 years. For this activity, identify the most recent year as Year 2 and the second most recent year as Year 1.
3. Build a new Excel model of the companys balance sheet and income statement for years 1 and 2 using the template provided. Years 1 and 2 dollar data should be provided in two adjacent columns in your Excel model. You may consolidate some line items on the publicly available statements if appropriate. If the statements are too abbreviated, you may have to investigate the firms annual report to gather a bit more detail to make your analysis meaningful. For example, your Balance Sheet should include the main sub-categories of Current Assets and should NOT simply list the total current assets without including the basic main components.
4. Build a common size balance sheet analysis using the Excel template on the same worksheet page as your balance sheet, in the columns to the right of the dollar value entries for the balance sheet. Include common base year analysis, as well as combined common size common base year analysis. See definitions below from the homework document. Thus, on a single balance sheet worksheet (tab) you should have: 1) the dollar values, 2) the common size values, 3) the common base year values and 3) the combined common size common base year values in columns to the right of the dollar values. Use Excel formulas for the computations.
5. Build a common size income statement analysis using the Excel template provided. Include common base year analysis, as well as combined common size common base year analysis. See definitions below from the homework document. Thus, on a single income statement worksheet (tab) you should have: 1) the dollar values, 2) the common size values, 3) the common base year values and 3) the combined common size common base year values in columns to the right of the dollar values. Use Excel formulas for the computations.