ACC 122 Principles of Financial Accounting II
Financial Statement Analysis Assignment
Due Dates:
11/30 – Final written report, Excel file, annual reports.
Required: Written Components
1. Obtain the most recent annual report for two competitor companies in the same industry. Your two reports should be for the same year of operations. The reports should contain at least two years of income statement data and two years of balance sheet data.
a. You may not choose a company already analyzed during this course by yourself or any other student.
b. You may not choose a company in the same industry as the company you used throughout the course, i.e. if you chose Ingles, you can’t choose another grocery store for the final project. You must pick a company from a different industry.
2. In an Excel workbook on six different worksheets with labeled tabs, perform a horizontal analysis, vertical analysis, and a ratio analysis for each of your chosen companies.
a. Your horizontal analysis should compare the same fiscal years for each company.
b. Your vertical analysis should be for at least two years, current and prior year, and the same fiscal years for each company.
c. Your ratio analysis should include at least 5 ratios as points of comparison. The same 5 ratios should be compared for each company. They should be a mixture of liquidity, solvency, and profitability ratios.
3. Prepare a short-written report comparing your two chosen companies ultimately concluding with which company you would recommend as the best investment choice. Use the information created in your Excel workbook as well as the following to complete your comparison:
a. Management Discussion and Analysis from each report.
b. Information from researching the industry your two companies are in.
c. Analyze each company’s investing and financing activities for the most recent year as identified in the statement of cash flows, specifically identifying the two largest investing activities and the two largest financing activities. Discuss whether you agree or disagree with the investing and financing strategies that each company appears to be employing.
d. Your analysis is limited to 2 (two) pages, and must be typed, double-spaced, and have a 12-point font.
Steps for submitting your Assignment:
1. Annual Report Submission (20pts): You must submit the entire annual report for each company being discussed either by uploading the PDF or providing working link in the comments box of the submission link in Module 5.
2. Excel Submission (40pts): Please upload your Excel analysis file in the assignment submission link in Module 5.
3. Written Report – Final Submission (40pts): You will upload the final version of your written report in the assignment submission link in Module 5.