1. Download data of any company: Input data into Excel from the balance sheet, income statement and...
Question:
1. Download data of any company: Input data into Excel from the balance sheet, income statement and
statement of cash flows for the most recent 4 years. The statements should each be on
a separate tab.
2. Analysis: Create a common size income statement (i.e., the vertical analysis, the
income statement as a percentage of sales) and a common size balance sheet (i.e., the
vertical analysis, the balance sheet as a percentage of total assets). Perform horizontal
analysis of the income statement and balance sheet (annual percentage changes).
PART 2
1. Background: Describe the industry your company operates in and your company’s main
business.
2. Financial analysis:
(1) From the vertical analysis of the balance sheet, what is the main feature of the company’s
capital structure (i.e. Does the financing of assets come mainly from liabilities or equities? Is
there any change in the company asset composition over the past 4 years?
(2) From horizontal analysis of the income statement, what you can say about company’s
performance in the past 3 years.
(3) Discuss your firm’s sources and uses of cash from the operating activities, investing
activities, and financing activities.
3. Sustainability Analysis:
(1) Where do you obtain the sustainability disclosure of the company? You can provide a link.
(2) Summarize the business model and describe how the business advances the goal of
sustainability.
(3) To improve sustainability, what measures the company has taken or will take?
PART 3
1. Introduction of the firm and its industry
2. Analysis of financial statements (mainly ratio analysis). You may consider the following
tools/techniques:
A. Figures of trend in profitability, liquidity and efficiency.
B. Company’s performance in the past 3 years from the horizontal analysis
C. Significant features of the firm’s assets/liabilities/shareholders’ equity.
3. Analysis of the company’s sustainability disclosure. You can consider the following
aspects:
A. How the business advances the company’s goal of sustainability.
B. What measures the company has taken or will take to improve the sustainability?
C. How the sustainability measures influence the company’s income statement and
balance sheet?
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward