balance sheet

Project Description:

using the spreadsheet format attached obtain the 10q financial statements for the following companies for 3/31/08: emc (emc ticker) and ibm (ibm). msn money can be used to download the 10q’s and industry comparisons. do the following for this case:
1. using the spreadsheet format attached, prepare a balance sheet, p&l, and statement of cash flows (you can cut and paste the cash flows but the bs and p&l must be entered on the excel sheet) spread the 6 months ending 3/31/08 and 3/31/07 numbers in a common size format.
2. on the p&l, calculate each p&l line as a percentage of total sales and compare the gm, operating expense, operating income, and pre-tax earnings to the industry.
3. calculate the following ratios in the spreadsheet: current, quick, debt/equity, roa, roe, days sales outstanding, inventory in days, book value per share, asset turnover, ar turnover, and inventory turnover, eps, ebitda, interest coverage, and pe ratios.
4. compare these ratios to the industry average (, same for ibm.
5. read the footnotes to the 10q’s. in your case study, discuss each company separately. your discussion should detail the following :
a. discussion of each company, what they do, how many employees, etc..
b. discuss the p&l trends of the 2 companies (again, with separate heading for p&l, bs, and the same for ) discuss, sales growth over the past two periods, cogs, gm analysis, operating expenses (any significant increases or deceases why?, what caused the increases or decreases for the line items presented? any non-recurring or unusual items in the p&l? if so what and why did they occur? why are they recurring or non recurring? what about r&d, if any? is it up or down and why?

c. break out the sales by product line (services versus hardware (if possible ,if not state why).
d. what new products are in the pipeline and does each company have enough in the pipeline to keep sales growth on track? give specific examples of how you arrive at your conclusions.
e. compare the p&l as a percentage of sales to the industry for each company. what are the comparisons telling you. why are the ratios above or below the industry? is this a problem? can the company cover interest expenses?
f. on the balance sheet, compare the bs ratios to the industry and discuss each ratio, what are the comparisons telling you. why are the ratios above or below the industry? is this a problem? are debt levels too high? if so why are they borrowing and what is the money used for? any unusual buildups in assets or liabilities? if so, what and why?
g. any contingent liabilities? if so what? any subsequent events that occurred after to the financial statement date that is noteworthy? if so, what are they and what is the impact on the financial statements?
6. spread (copy and paste into excel) and review the cash flow statements for the 2 companies, answer the following questions:
a. discuss operating, financing and investing activities. anything unusual? what is going on there? talking about increases and decreases in line items that have significant deviations. any heavy borrowing, investing? be very specific.
b. what is the impact of the statement of cash flows on cash and the business in general?
c. which years were good or difficult in terms of operational cash flow?
d. what contributed to the positive or negative aspects of a-c above?
e. what role does depreciation play in the statement of cash flows and why is it added back into cash flow?
7. what is the current stock price, pe, and eps for each company? how do they compare to the industry and why are they above or below average?
8. given your analysis on all these questions, which firm would you invest in if you had the money and which firm do you expect to perform better in the stock market in 2009 and forward? justify your answers with facts from the case and your understanding of the company.
Skills Required:
Project Stats:

Price Type: Negotiable

Total Proposals: 4
1 Current viewersl
31 Total views
Project posted by:


Proposals Reputation Price offered
  • 4.9
    68 Jobs 54 Reviews
    $0 in 0 Day
  • 4.8
    552 Jobs 390 Reviews
    $0 in 0 Day
  • 4.4
    31 Jobs 22 Reviews
    $60 in 0 Day