Sources and Uses of Funds Assignment 1 Objective By referring to various sources of data, calculate the sources and uses of funds for a specified company, allocate the sources used to find each use, and analyze the results. 2 Due Date This assignment is due in PDF form in the appropriate dropbox at the beginning of class on Tuesday, February 22 3 Company Assigned The assigned company is Northrop Grumman Corporation (Ticker: NOC). 4 Assignment Details 1. Perform the required calculations using data from Mergent and/or the SEC. HINT: Use downloadable financial statements from the SEC website and your spreadsheet from the prior assignment as a starting point, and possibly create a new tab for the calculations, etc. 2. Calculate the sources and uses of funds for the 2020 2021 period (one source and use of funds analysis) following the methodology discussed in class. 2.1. If depreciation expense is only available in combination with amortization, it is acceptable to use the combined figure in the appropriate calculations pertaining to net fixed assets and funds provided by operations. 2.2. It is acceptable to assume clean surplus accounting in which it is assumed that the difference between net income and the change in retained carnings is dividends. 3. Present the sources of funds and uses of funds in a table as shown in class, and show the total amount of sources and the total amount of uses. 4. Create a table allocating one or more sources to each use. 4.1. Show exactly how much of each source is being used to fund each use. 4.2. Show that the total sources allocated to a given use equal the use as demonstrated in class. 4.3. Show the sum of all of the sources in the allocation table along with the sum of all of the uses. 4.4. Ensure that the most appropriate allocations have been made as discussed in class and using sound finance principles. 5. Write a roughly one page single spaced analysis of your findings. 5.1. In your analysis, briefly discuss the most relevant allocations along with their implications. 5.2. Discuss the financial health of the specified company as illuminated by the sources and uses of funds analysis. Sources and Uses of Funds Assignment 1 Objective By referring to various sources of data, calculate the sources and uses of funds for a specified company, allocate the sources used to find each use, and analyze the results. 2 Due Date This assignment is due in PDF form in the appropriate dropbox at the beginning of class on Tuesday, February 22 3 Company Assigned The assigned company is Northrop Grumman Corporation (Ticker: NOC). 4 Assignment Details 1. Perform the required calculations using data from Mergent and/or the SEC. HINT: Use downloadable financial statements from the SEC website and your spreadsheet from the prior assignment as a starting point, and possibly create a new tab for the calculations, etc. 2. Calculate the sources and uses of funds for the 2020 2021 period (one source and use of funds analysis) following the methodology discussed in class. 2.1. If depreciation expense is only available in combination with amortization, it is acceptable to use the combined figure in the appropriate calculations pertaining to net fixed assets and funds provided by operations. 2.2. It is acceptable to assume clean surplus accounting in which it is assumed that the difference between net income and the change in retained carnings is dividends. 3. Present the sources of funds and uses of funds in a table as shown in class, and show the total amount of sources and the total amount of uses. 4. Create a table allocating one or more sources to each use. 4.1. Show exactly how much of each source is being used to fund each use. 4.2. Show that the total sources allocated to a given use equal the use as demonstrated in class. 4.3. Show the sum of all of the sources in the allocation table along with the sum of all of the uses. 4.4. Ensure that the most appropriate allocations have been made as discussed in class and using sound finance principles. 5. Write a roughly one page single spaced analysis of your findings. 5.1. In your analysis, briefly discuss the most relevant allocations along with their implications. 5.2. Discuss the financial health of the specified company as illuminated by the sources and uses of funds analysis
