w AutoSave On O FS PQ Project Final Project(2)(1) (1).docx . Saved v Search Ron Madlinger RM X File Home Insert Draw Design Layout References Mailings Review View Help Comments Editing Share ~ & Cut Calibri 11 A A Aa- A . 2 2 1 1 Find U Paste [B Copy Normal No Spacing Heading 1 Heading 2 Subtitle IUvab x x A LABEL . . Title Subtle Emphasis Emphasis Intense Emphas Strong Quote Intense Quote SUBTLE REFERENC Lic Replace Dictate Editor Format Painter Select Undo Clipboard Font Paragraph Styles Editing Voice Editor classified in the exact same industry. You may need to try several companies until you Seton Hall University find a competitor in the exact same industry. BMBA 8008/ BACC 6101 As an example, if in Step 1 above, you selected Home Depot, when you follow the procedure described in Steps 2 and 3 above, you will find that Home Depot is classified in the Home Improvement Stores industry. When you follow the procedure outlined in Step 5 above, when you click on the Related option, the companies listed will include WMT (Wal-Mart) as well as LOW (Lowe's). When you click on each, and again follow the procedures in Steps 2 and 3 above, Lowe's, but not Wal-Mart is classified in the Home Improvements Stores industry. Again, please make sure that the competitor you select Semester Project s in the same industry classification as your company. Please enter on your spreadsheet, the following information for your company, and the competitor selected, for the most recent 2 years. In this project, you will use your understanding of financial, as well as managerial, accounting to A. Using the Financials option on the menu, and then the Income Statement and Balance Sheet prepare an analysis of the performance of two competitors within the same industry. To prepare options which then appear below the top menu: your analysis, you will use Microsoft Excel and data from the internet. Then, you will communicate a. Total Current Assets the results of your analysis in a written report. Thus, this project will help you build your critical b. Property, Plant and Equipment thinking, technology, and communication skills. c. Goodwill d. Total Non-Current Assets . Total Assets Find information on your company, and its competitor, at www.man.com/money, following these steps: Total Liabilities g. Total Equity 1. Below the picture covering current events is a search box with words Quote Search h. Revenues i. Cost of Goods Sold (on the site, referred to as Cost of Revenue) Within this box, type the name of your company. The "ticker," a one to four letter | identifier (such as AAPL for Apple Inc.), along with your company's name will begin to Gross Profit (also referred to as Gross Margin) k. Operating Expenses appear. Net Income 2. Select your company's name. The latest stock quote along with the graph presenting the stock price movement for your company will appear on your screen. In between the quote and graph is a menu bar with the SUMMARY item highlighted. Select the menu B. Following Steps 3 and 4 above (or by calculating from the financial statements for your companies), enter the following financial ratios, for your company and its competitor for the item ANALYSIS 3. Scroll down until you come to a second menu bar with the option FINANCIAL HEALTH, past 2 years. TRADING STATISTICS, MANAGEMENT EFFECTIVENESS. The option FINANCIAL HEALTH a. Current Ratio will be highlighted. Right below this menu bar is the title of your industry. To the right b. Leverage Ratio (financial leverage) .Gross Profit (Gross Margin on the site) are several ratios you will be looking for. The last column covers those related to your d. Return on Equity industry. Note: When you zoom the screen out and in, this website provides more or less e. Return on Assets information. If you cannot find all of the ratios that you are looking for, try zooming the Return on Sales screen out (to 70% or less). Additional ratios may appear. g. Asset Turnover 4. Next select from this menu bar, the third option MANAGEMENT EFFECTIVENESS. The h. Inventory Turnover remaining industry ratios will appear. 5. To select a competitor for your company in the same industry, on the menu bar that you C. Analyze the profitability of your two companies: used in Step 2 above, click on the Related option. You will see a list of competitors listed. Please note that not all the competitors listed are in the exact same industry that your a. Which company showed the greatest improvement (or least decrease) in profitability as measured by ROA? company is classified in. For purposes of this project, you will need to make sure that the b. Which company showed the greatest improvement (or least decrease) in profitability as competitor you select is classified in the exact same industry as your company. Using the measured by ROE? procedure described in Step 3 above, select a company from this list and see if is . Are your answers for (a) and (b) different? d. If yes, why? Page 1 Financial Accounting Project Page 2 Financial Accounting Project Page 1 of 3 973 words CX Text Predictions: On 1 Accessibility: Good to go FOCUS 9 6 -- - + 110% Q Search 8:42 PM 10 3/13/2023w AutoSave On OF PQ Project Final Project(2)(1) (1).docx . Saved v Search Ron Madlinger RM X File Home Insert Draw Design Layout References Mailings Review View Help Comments Editing Share ~ & Cut Calibri 11 A A Aa- A EV E 2 1 1 Find U Paste [B Copy I Uvab x x' A LABEL. . Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emphasis Emphasis Intense Emphas Strong Quote Intense Quote SUBTLE REFERENC Gc Replace Dictate Editor Format Painter Select Undo Clipboard Font Paragraph Styles Editing Voice Editor D. Analyze the productivity of your two companies: a. Which company showed the greatest improvement (or least decrease) in productivity as measured by Asset Turnover? b. Based on the available information what would you say was the biggest cause of this increase (or lesser amount of decrease) in productivity? E. Estimate Cost Structure of the 2 companies. Use the ratio of current assets to total assets as an estimate of the cost structure. Which company has a higher fixed cost structure? j. In this exercise, do you think that the current ratio is a reasonable representation of the relative cost structure of your two companies? Hint: This would depend on the nature of the non-current assets of your companies. k. Is the year-to-year change over the past 2 years, in the same direction for the 2 companies? I. Given the relative cost structures of the two companies, and the change in sales for the 2 companies, what would you have expected for the change in Gross Profit? An increase? Decrease? Why? Please submit your completed Spreadsheet using the Assignment function in BlackBoard. Spreadsheets will be graded based on the accuracy of your computations, proper use of formulas, and professional appearance. Late or incompletely submitted assignments will be penalized by 10% per business day. Page 3 Financial Accounting Project Page 3 of 3 973 words CX Text Predictions: On 1 Accessibility: Good to go FOCUS BE 8 -- - + 110% Q Search 8:42 PM 10 3/13/2023