Lab $8-1$ Create a Horizontal and Vertical Analysis Using XBRL Data$$S&P$100$

Lab Note: The tools presented in this lab periodically change. Updated instructions, if applicable, can be found in the eBook and lab walkthrough videos in Connect.

Case Summary: This lab will pull in XBRL data from S&P$100$ companies listed with the Securities and Exchange Commission. You have the option to analyze a pair of companies of your choice based on your own interest level. This lab will have you compare other companies as well.

Lab $8-1$ Part $1$ Objective Questions $($LO $8-1)$

OQ$1.$ What was the Net Income value for AAPL in $2020?($Round to the nearest million dollars.$)$

OQ$2.$ Change the values in your test formula. What is the Net Income for NKE in $2020?($Round to the nearest million dollars.$)$

OQ$3.$ Change the values in your test formula. What is the value of $[$Current Assets$]$ or Assets Current for PG in $2020?($Round to the nearest million dollars.$)$

Lab $8-1$ Part $1$ Analysis Questions $($LO $8-1)$

AQ$1.$ XBRL Analyst in Google Sheets uses "normalized" tags for common financial statement elements. What is the purpose of $$normalized$$ XBRL tags?

AQ$2.$ Select either Apple Inc. $($AAPL$)$ or Nike $($NKE$)$ and identify three questions you might want to know about that company$$s financial performance over the past three years. For example, $$What is the trend of operating costs?$$

AQ$3.$ Form a hypothesis for each of your questions. For example, $$I expect Nike$$s operating costs have gone up$.$

Lab $8-1$ Part $2$ Objective Questions $($LO $8-1,8-2)$

OQ$1.$ What direction is cost of revenue trending for GE$?$

OQ$2.$ In which of the three years analyzed is operating expense highest as a percentage of revenue for PG$?$

OQ$3.$ If analysts expect MMM to attain a gross profit margin above $47$ percent, does the company exceed the expectations in all three years analyzed?

Lab $8-1$ Part $2$ Analysis Questions $($LO $8-1,8-2)$

AQ$1.$ Enter the ticker for Apple Inc. $($AAPL$)$ or Nike $($NKE$).$ Look at the trends and composition of the income statement, then answer your three questions from Part $1$ AQ$2.?$

AQ$2.$ How did the actual results compare with your hypothesis in Part $1$ AQ$3?$

AQ$3.$ Replace the company ticker with a competitor of your company $($e$.$g$.,$ MSFT vs$.$ AAPL$).$ How do their trends compare with your initial company?

AQ$4.$ How could you expand this table you built in Part $2$ to include multiple competitors$$ data on the same sheet for quick analysis?

Lab $8-2$ Create Dynamic Common Size Financial Statements$$S&P$100$

Lab Note: The tools presented in this lab periodically change. Updated instructions, if applicable, can be found in the eBook and lab walkthrough videos in Connect.

Case Summary: This lab will pull in XBRL data from S&P$100$ companies listed with the Securities and Exchange Commission. This lab will have you attempt to identify companies based on their financial ratios.

Lab $8-2$ Objective Questions $($LO $8-1)$

Match the company names in Lab Exhibit $8-2$A with their corresponding ratios in each column of Lab Exhibit $8-2$B$.$

OQ$1.$ Which company$$s ratios match Column A$?$

OQ$2.$ Which company$$s ratios match Column B$?$

OQ$3.$ Which company$$s ratios match Column C$?$

OQ$4.$ Which company$$s ratios match Column D$?$

OQ$5.$ Which company$$s ratios match Column E$?$

OQ$6.$ Which company$$s ratios match Column F$?$

OQ$7.$ Which company$$s ratios match Column G$?$

OQ$8.$ Which company$$s ratios match Column H$?$

OQ$9.$ Which company$$s ratios match Column I?

OQ$10.$ Which company$$s ratios match Column J$?$

Lab $8-2$ Analysis Questions $($LO $8-1)$

AQ$1.$ Look at the different companies$$ ratios. Which ones stand out to you as being atypical?

AQ$2.$ Look at the values that return a $0.$ Is it likely that the $0$ represents the company$$s actual standing? What else might explain the $0$ value?

Lab $8-3$ Analyze Financial Statement Ratios$$S&P$100$

Case Summary: Financial analysts, investors, lenders, auditors, and many others perform ratio analysis to help review and evaluate a company$$s financial statements and financial performance. This analysis allows the stakeholder to gain an understanding of the financial health of the company and gives insights to allow more insightful and, hopefully, more effective decision making.

In this lab, you will access XBRL data to complete data analysis and generate financial ratios to compare the financial performance of several companies. Financial ratios can more easily be calculated using spreadsheets and XBRL$.$ For this lab, a template is provided that contains the basic ratios. You will $(1)$ select an industry to analyze, $(2)$ create a copy of a spreadsheet template, $(3)$ input ticker symbols from three U$.$S$.$ public companies, and $(4)$ calculate financial ratios and make observations about the state of the companies using these financial ratios.

Lab $8-3$ Objective Questions $($LO $8-1)$

OQ$1.$ Which industry did you analyze?

OQ$2.$ For your Company $1,$ which ratio has seen the biggest change from $2018$ to $2020?$ Use sparklines or calculate the percentage change.

OQ$3.$ Which of the three companies is most liquid in $2020,$