You determine the format. I would like you to use some computer application, not pen and paper. I would suggest WORD for any analysis comments and EXCEL for any spreadsheet analysis (Horizontal/Vertical) You are analyzing a company from a financial standpoint and comparing them to another company. Make it easy for us to read and understand. Make a recommendation to deal with this company or not based on your analysis.

1. Choose a company from the following public companies. That means they trade their stock on a major stock exchange to anyone. TARGET, COSTCO, MACYS, NORDSTROM, WALLMART, CVS, ALBERTSONS (includes Safeway), AMAZON, OR KOHLS

2. Go to the company website to get the full financial information. Or just google the company name and 10K. The 10K or the earnings release at the fiscal year end has the financial results. YOU MUST USE A FULL YEAR INCOME STATEMENT. For most you should be able to find the 2020 10K. If not, use the 2019.

3. Look at the Income statement, and balance sheet. If you want to know what the company says about its financial results read the latest financial statement released by the company.

4. Do a Horizontal analysis of the Income Statement and Balance Sheet and a Vertical analysis of the Income Statement using 2020 and 2019 or 2019 and 2018.

If you can download into EXCEL that would work great for this. If not, input the numbers into EXCEL or some other spreadsheet program.

5. Tell me a little about the company.

• What does the company do? What do they sell?

• Where are they incorporated? Where is their headquarters? Who are their auditors?

• Who else is in this business? Who are the competitors?

• Look at their Statement of Cash Flows – did cash go up since last year or down. What caused the largest increases, largest decreases? List the top 3things causing cash to go up and 3 causing cash to go down.

• Do the have a positive net income, is it higher than last year? What are the big changes on the income statement from last year?

• How do they account for inventory – FIFO, LIFO, or Weighted Avg?

• How do they depreciate their physical assets, straight line or other?

• Do they have any unearned or deferred revenue?

• Is their current ratio higher or lower than last year?

• What is their stock price per share? Is it higher or lower than a year ago?

• If you could ask the company president 3 questions, what would they be?

6. Choose a second company from the list above. These are all merchandise companies so choose any one you want. Some might have very big differences in their financials because some sell high volume at lower prices and some sell lower volume at higher prices. Analyze the financial results of the 2 companies side by side including the following: (For this, you will need to find the last full year of financial results for your second company, either 2019 or 2018)

• Current Ratio

• Debt ratio?

• Quick ratio (to be discussed in class)

• How much cash do they have?

• Gross Profit – some don’t calculate it – if so, skip.

• Profit Margin (Net Income divided by Net Sales or Revenue)

• Accounts Receivable Turnover, Average days to collect (365/AR turnover)

• Inventory turnover. How many times in a year do they turn over inventory

• What is their earnings per share? Or loss?

• What is their P/E ratio (use a current stock price, like May 15th)

• If you had the $$$ to invest, which company would you invest in?

Answer rating: 100% (QA)

31122019 31122018 Revenue 280522 232887 Cost Of Goods Sold 165536 139156 Gross Profit 114986 93731 Research And Development Expenses 35931 28837 SGA Expenses 64313 52177 Other Operating Income Or Expe... View the full answer