Excel Project: Part II Instructions Competitor #1 Income Sta ✓ Solved

Excel Project: Part II Instructions Competitor #1 Income Statement

Continue in the same Excel workbook prepared in Week 2, adding the following tabs: The 5th tab and 8th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Income Statements. (Replace “Competitor Company Name” with the name of the competitor.) Include the latest three years of income statements for your competitor based on SEC filings. Ensure that the worksheet includes a header with:

  • Company Name
  • Financial Statement Name (Income Statements)
  • Financial Statement Dates
  • Denomination level ($s in millions or thousands, etc.)

The 6th and 9th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Balance Sheets. Include the latest three years of balance sheets for your first competitor based on SEC (10-K) filings. (Note: Some 10-Ks only provided 2 years of balance sheet data. You may need to download the second most recent 10-K for your company in order to obtain 3 years of balance sheet data.) Ensure that the worksheet includes a header with:

  • Company Name
  • Financial Statement Name
  • Financial Statement Dates
  • Denomination level ($s in millions or thousands, etc.)

The 7th and 10th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Cash Flows. Include the latest three years based on SEC (10-K) filings. Make sure that the Income Statement, Balance Sheet, and Cash Flows Statement tie in as follows:

  • Net Income from Income statement agrees with Net Income on the Statement of Cash Flows
  • Ending Cash Balance from Statement of Cash Flows agrees with Cash in the Balance Sheet

The 11th tab in your Financial Statement Analysis Template must be labeled Historical and Competitor Ratios. The list of ratios to be included are as follows. They should be grouped under the headings, as shown:

  • Liquidity Ratios
  • Current Ratio
  • Quick Ratio
  • Leverage Ratios
  • Debt to Total Assets Ratio
  • Debt Equity Ratio
  • Long-Term Debt to Equity
  • Times Interest Earned Ratio
  • Activity Ratios
  • Inventory Turnover
  • Fixed Assets Turnover
  • Total Assets Turnover
  • Accounts Receivable Turnover
  • Average Collection Period
  • Profitability Ratios
  • Gross Profit Margin
  • Operating Profit Margin
  • Net Profit Margin
  • Return on Total Assets (ROA)
  • Return on Stockholders’ Equity (ROE)
  • Earnings Per Share (EPS)
  • Price Earnings Ratio

Calculate the ratios for your chosen company for the last three years, linking the ratio calculations back to the historical financial statement tabs (Tabs 2-4) using formulas. Calculate the ratios for each of your company’s competitors (most recent year only), linking the ratio calculations to the competitor financial statements shown in Tabs 5-10 using formulas. Using the internet, locate the industry averages for the ratios listed above, and include them in the final column of the ratio tab. Include a footnote on the tab to identify the source of the industry averages.

Other instructions: The Excel workbook should be professionally formatted. Professional formatting includes:

  • All numbers are formatted similarly. The use of decimals, commas for thousands, and other formatting is consistent.
  • Dollar signs are included in the first and last numbers of each column.
  • Subtotals and totals are preceded by a single underline. Totals are followed by a double underline.
  • Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.
  • All totals and subtotals in the competitor financial statements as well as the ratio calculations should be calculated using formulas.

Paper For Above Instructions

The project requires the creation of a comprehensive Excel workbook to analyze the financial performance of selected competitors, focusing on income statements, balance sheets, cash flow statements, and various financial ratios. This analysis aims to provide valuable insights into each competitor’s financial standing and operational efficiency by evaluating their financial reports over three consecutive years. Specifically, the project encompasses a detailed approach, ensuring that each section of the workbook adheres to professional standards and contains accurate data derived from SEC filings.

Income Statements Tab

The 5th and 8th tabs labeled as Income Statements must include the latest three years of income statements for the chosen competitor, ensuring that the data is diligently sourced from SEC filings. Each income statement must have a header indicating the company name, the nature of the financial statement, and the relevant dates, along with a clear denomination level such as amounts in millions. This incremental transition clarifies the progression of revenues and expenses over the past years, creating a clear trajectory of the competitor's financial health.

Balance Sheets Tab

In the 6th and 9th tabs, the balance sheet data also demands the same three-year comparison based on SEC (10-K) filings. Proper formatting must be established, ensuring that headers reflect the relevant company name, statement name, dates, and denomination levels. These tabs should accurately detail assets and liabilities, creating a transparent view of the company's financial position. If necessary, seeking additional historical data from previous reports allows for a comprehensive presentation.

Cash Flow Statements Tab

The 7th and 10th tabs present cash flow statements that must encapsulate three years of vital cash flow information. This section ensures all three areas—the income statement, balance sheet, and cash flow statement—correlate seamlessly. Net income must align with the statement of cash flows to affirm completeness in these financial records.

Historical and Competitor Ratios Tab

Tab 11 is a vital analytical component, detailing historical and comparative ratios, incorporating liquidity, leverage, activity, and profitability ratios. The workflow includes various calculations linking back to earlier historical financial data, promoting accuracy through formulas. Furthermore, obtaining industry averages and documenting source references within this tab allows for an informed contextual understanding of each competitor's performance against industry standards.

Formatting and Presentation

Detailing into the formatting of the Excel workbook ensures professionalism. This involves a uniform approach to number formatting—including decimals, decimal marks, and signs—alongside clear visual distinctions between subtotals and totals. Organization within each spreadsheet tab should support readability and usability, highlighting important metrics through indentation and bolding.

Each aspect of the workbook—from calculations to presentation—is geared to provide a holistic view into the financial standings of the chosen competitors. By documenting an accurate analysis through robust methodologies, stakeholders can evaluate the financial trends that may influence future business strategies.

Conclusion

Overall, the Excel project serves as a foundational tool for understanding key financial metrics across major competitors. It empowers analysis capabilities that can significantly aid in strategic business decision-making processes. The varied components interlinked through detailed formulas foster an authoritative stance on financial acumen relevant to the competitive market landscape.

References

  • Best Buy Co., Inc. (2020). SEC Filings. Retrieved from [SEC website link]
  • Yahoo Finance. (2020). Best Buy Co., Inc. Stock Market Information. Retrieved from [Yahoo Finance link]
  • Competitor Analysis Report. (2020). Industry Insights and Financial Comparisons. Retrieved from [Industry Report link]
  • Investopedia. (2021). Financial Ratios. Retrieved from [Investopedia link]
  • SEC.gov. (2020). Inline XBRL viewer. Retrieved from [SEC.gov link]
  • MarketWatch. (2021). Latest Earnings Reports. Retrieved from [MarketWatch link]
  • Morningstar. (2021). Financial Data and Analysis. Retrieved from [Morningstar link]
  • Investing.com. (2021). Financial Ratios and Analysis. Retrieved from [Investing.com link]
  • Bloomberg. (2021). Business Financial Analysis Tools. Retrieved from [Bloomberg link]
  • Deloitt.com. (2020). Industry Financial Trends. Retrieved from [Deloitte link]

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