Module 2 ACC498 Financial Statement Analysis

The company for this assignment we are analyzing is Amazon. Only the tables and graphs for the first five tabs need to be completed in the Excel workbook; Import financial statements, stock prices, Horizontal analysis-IS, Vertical analysis-IS, and IS Comparison. The correlating questions may be answered using a Word document.

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HORIZONTAL ANALYSIS
ABC Corporation
Comparative Income Statements
For the Years Ending December 31
Percentage Difference
Current Year
(CY)
Net Sales
Cost of goods sold
Gross Margin
Operating expenses:
Selling expenses
Administrative expenses
Total operating expenses
Income from continuing
operations
Income tax expense
Nonrecurring items
Net income
Prior Year
(PY)
2 Years Prior
(2YP)
(CY – PY)/PY
Percentage Difference
(PY – 2YP)/2YP
VERTICAL ANALYSIS
ABC Corporation
Comparative Income Statements
For the Years Ending December 31
Current Year
(CY)
Net Sales
Cost of goods sold
Gross Margin
Operating expenses:
Selling expenses
Administrative expenses
Total operating expenses
Income from continuing operations
Income tax expense
Nonrecurring items
Net income
100%
Prior Year
(PY)
100%
2 Years Prior
(2YP)
100%
2YP
PY
CY
Net Sales
COGS
Gross Margin
Net Income
1
1
1
1
0
0
Net Sales
COGS
2YP
PY
CY
COGS
Gross Margin
Net Income
HORIZONTAL ANALYSIS
ABC Corporation
Comparative Balance Sheets
For the Years Ending December 31
Percentage Difference
Current Year
(CY)
Current assets
Long-term investments
Property, plant, & equipment
Intangible assets
Other assets
Total assets
Current liabilities
Long-term liabilities
Total liabilities
Paid-in capital
Retained earnings
Treasury stock
Total stockholders’ equity
Total liabilities &
stockholders’ equity
Prior Year
(PY)
2 Years Prior
(2YP)
(CY – PY)/PY
Percentage Difference
(PY – 2YP)/2YP
VERTICAL ANALYSIS
ABC Corporation
Comparative Balance Sheets
For the Years Ending December 31
Current Year
(CY)
Current assets
Long-term investments
Property, plant, & equipment
Intangible assets
Other assets
Total assets
Prior Year
(PY)
2 Years Prior
(2YP)
100%
100%
100%
100%
100%
100%
Current liabilities
Long-term liabilities
Total liabilities
Paid-in capital
Retained earnings
Treasury stock
Total stockholders’ equity
Total liabilities and
stockholders’ equity
2 YP
PY
CY
Assets
Liabilities
Stockholders’ Equity
1
1
1
1
0
0
Assets
2 YP
PY
CY
Assets
Liabilities
Stockholders’ Equity
ABC Corporation
Statement of Stockholders’ Equity
For the Year Ending December 31, CY
Common Stock,
$x Par
APIC – CS
Retained
Earnings
Prior Year (PY)
Current Year
(CY)
Balance, January 1
Issuance for additiona shares for cash
Purchase of treasury stock
Net income (loss)
Cash dividends
Treasury stock
Balance, December 31
2 Years Prior
(2YP)
Number of shares outstanding
Treasury Stock
Total
Stockholders’
Equity
Statement of Cash Flows
ABC Corporation
For the Years Ending December 31
Cash Flow Activity
Net cash provided (used by) operating activities
Net cash provided (used by) investing activities
Net cash provided (used by) financing activities
Increase (decrease) in cash
Beginning cash balance
Ending cash balance
Current Year
(CY)
Prior Year
(PY)
2 Years Prior
(2YP)
2 YP
PY
CY
Operating Activities
Investing Activities
Financing Activities
Ending Balance
1
1
1
1
0
0
Operating
Activities
2 YP
PY
CY
Operating
Activities
Investing
Activities
Financing
Activities
Ending Balance
2 YP
PY
CY
Net Income
Operating Activities
1
1
1
1
0
0
Net Income
2 YP
PY
CY
Net Income
Operating Activities
Corporation
Liquidity Ratios:
Current ratio
Quick (acid-test) ratio
Current cash debt ratio
Profitability Ratios:
Profit margin on sales
Return on assets
Return on common equity
Earnings per share
Price-earnings ratio
Payout ratio
Efficiency Ratios:
Accounts receivable turnover
Inventory turnover
Asset turnover
Solvency Ratios:
Debt to assets
Times interest earned
Cash debt coverage
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COMPETITORS
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Industry