Financial Statement Analysis Project

Please see the attached file and follow directions concisely. It is imperative that this is completed on time. Please only complete Part one at this time.

Instructions for Financial Statement Analysis Project
The purpose of this assignment is to give students the opportunity to read and use financial
statements from two real firms that they have an interest in. You will do some basic financial
statement analysis on two firms and chose the firm you believe would be the best investment.
The two companies should be in the same industry (For example, Walgreens and CVS ) – Please
do not choose Walgreens and CVS as those companies are used as an example.
Part 1 (Due via D2L Submissions > FSA project Part 1, January 31, 2024)
Required:
Create a Word document that contains the following financial statements for each of your
two companies.
a. Income Statement
b. Balance Sheet
c. Changes in Owner’s equity,
d. Statement of Cash flows
To find your reports:
Go to the company website, look for a link (usually at the bottom of the page) that either
says “our Company” or “Investors” or “Investor Relations” click on that. Look for a copy of
their most recent annual report.
To find the financial statements, look in the index to the report. Financial Statements are
usually in “Item 8.” Item 8 starts with the Auditor’s report, (there are 2 auditor reports. The
financial statements immediately follow the auditor reports.
Please choose US public companies, as their financial statements will conform to
GAAP. It will save you many headaches.
Part 2: (Due via D2L Submissions > FSA project, Part 2 February 14, 2024).
Required:
Create a report in Word that includes the following. Important, please format your report in
the following order: (Chapter 9 and a lecture video outline the analysis required)
A. Executive Summary of findings (one paragraph): The paragraph includes, a) a
statement of which companies your chose, b) a couple sentences introducing your
companies … i.e., what industry are they in, a bit about what their business is and, c) A
statement of which firm you chose as the better investment.
B. A chart with the required financial ratios. Use the format provided below:
Ratio
Working Capital
Current Ratio
Quick Ratio
Accounts receivable turnover
Average days to collect receivables
Inventory Turnover
Average days to sell inventory
Debt to Assets
Debt to Equity
No. times Interest Earned
Plant Assets to Long-term Liabilities
Net Margin
Asset Turnover
ROI
ROE
Earnings per share (find in I/S)
Book Value per share
Price Earnings Ratio
https://finance.yahoo.com/lookup/
Dividend Yield
https://finance.yahoo.com/lookup/
Your Firm #1
Name
.xxx
Your Firm #2
Name
.xxx
Etc.
Etc.
Ratio definition
Example: The
current ratio shows
the dollars of
current assets a firm
has they could
convert to cash
within a year to
cover current
liabilities (debts due
within a year)
C. This is where you provide the evidence that led to your choice of firm as a better
investment option. Look over your ratios and note where they are different. Which
company is stronger? Generally, one company won’t be stronger in all areas, so you
might choose the firm that is stronger in more areas, or you might choose the firm that
you feel is stronger in the most important areas. There is no right answer here, just
provide evidence to support your conclusion and tell me why you made your choice. No
more than one page.
Be professional, precise, and complete in your presentation.