Financial Statement Analysis Assignment

There are four parts to this assignment. All parts are to be completed in the attached Excel spreadsheet, which means that you must use excel for this assignment. Use of excel functions is required for all calculations. Failure to use excel functions will result in lost points. Save your spreadsheet using your last name in the title $($example$,$ Smith$\_$Analysis$)$ and submit through Canvas by the assignment due date.

Financial Statement Analysis Workbook S$2024.$xlsxDownload Financial Statement Analysis Workbook S$2024.$xlsx

Part $1$:

Using the annual reports for Lowe's and Home Depot attached above, find the following information from the financial statements and input them into highlighted yellow cells in the Excel spreadsheet $($attached just above where it says "Part $1").($The numbers you find from the financial statements will be used to calculate the information required for Part $2).$

For Fiscal years $($FY$)2020$ through $2022$:

Gross Revenue

Gross Profit

Net Income

For Fiscal years $($FY$)2021$ and $2022$:

Current Assets

Total Assets

Current Liabilities

Total Liabilities

Total Equity

Total Liabilities $+$ Equity

Part $2$:

Using excel functions, calculate the following in the appropriate highlighted yellow cells and identify which company $($Lowes or Home Depot$)$ is better for each measure each year:

Gross Revenue growth year to year. $($Horizontal Analysis from $2020$ to $2021$ and then $2021$ to $2022)$

Net Income growth year to year. $($Horizontal Analysis from $2020$ to $2021$ and then $2021$ to $2022)$

Gross Margin $\%$ for years $2021$ and $2022$

Net Profit Margin $\%$ for years $2021$ and $2022$

Current Ratio for years $2021$ and $2022$

Debt Ratio for years $2021$ and $2022$

Part $3$:

Do a basic line graph that shows Lowes vs$.$ Home Depot net income from $2020-2022.$ Show both companies in one graph. The lines should not be side by side

Part $4$:

If you were to invest $$1,000$ in either Lowes or Home Depot, who would you choose and why?