EXCEL PART 2

Excel Project: Part II Instructions
Competitor #1 Income Statement (Tab 5), Competitor #1 Balance Sheet (Tab 6), Competitor #1 Cash Flows (Tab 7), Competitor #2 Income Statement (Tab 8), Competitor #2 Balance Sheet (Tab 9), Competitor #2 Cash Flows (Tab 10), Historical and Competitor Ratios (Tab 11)
· Continue in the same Excel workbook prepared in Week 2, adding the following tabs:
o The 5th tab and 8th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Income Statements. (Replace “Competitor Company Name” with the name of the competitor.)
§ Include the latest three years of income statements for your competitor based on SEC filings.
§ Ensure that the worksheet includes a header with:
· Company Name
· Financial Statement Name (Income Statements)
· Financial Statement Dates
· Denomination level ($s in millions or thousands, etc.)
o The 6th and 9th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Balance Sheets. (Replace “Competitor Company Name” with the name of the competitor.)
§ Include the latest three years of balance sheets for your first competitor based on SEC (10-K) filings. (Note: Some 10-Ks only provided 2 years of balance sheet data. You may need to download the second most recent 10-K for your company in order to obtain 3 years of balance sheet data.)
§ Ensure that the worksheet includes a header with:
· Company Name
· Financial Statement Name 
· Financial Statement Dates
· Denomination level ($s in millions or thousands, etc.)
o The 7th and 10th tabs in your Financial Statement Analysis Template must be labeled (Competitor Company Name) Cash Flows. (Replace “Competitor Company Name” with the name of the competitor.)
§ Include the latest three years based on SEC (10-K) filings.
§ Make sure that the Income Statement, Balance Sheet, and Cash Flows Statement tie in as follows:
· Net Income from Income statement agrees with Net Income on the Statement of Cash Flows
· Ending Cash Balance from Statement of Cash Flows agrees with Cash in the Balance Sheet
o The 11th tab in your Financial Statement Analysis Template must be labeled Historical and Competitor Ratios
§ The list of ratios to be included are as follows. They should be grouped under the headings, as shown:
· Liquidity Ratios
o Current Ratio
o Quick Ratio
· Leverage Ratios
o Debt to Total Assets Ratio
o Debt Equity Ratio
o Long-Term Debt to Equity
o Times Interest Earned Ratio
· Activity Ratios
o Inventory Turnover
o Fixed Assets Turnover
o Total Assets Turnover
o Accounts Receivable Turnover
o Average Collection Period
· Profitability Ratios
o Gross Profit Margin
o Operating Profit Margin
o Net Profit Margin
o Return on Total Assets (ROA)
o Return on Stockholders’ Equity (ROE)
o Earnings Per Share (EPS)
o Price Earnings Ratio
§ Calculate the ratios for your chosen company for the last three years, linking the ratio calculations back to the historical financial statement tabs (Tabs 2-4) using formulas.
§ Calculate the ratios for each of your company’s competitors (most recent year only), linking the ratio calculations to the competitor financial statements shown in Tabs 5-10 using formulas.
§ Using the internet, locate the industry averages for the ratios listed above, and include them in the final column of the ratio tab. Include a footnote on the tab to identify the source of the industry averages.
o Other instructions:
§ The Excel workbook should be professionally formatted. Professional formatting includes:
· All numbers are formatted similarly. The use of decimals, commas for thousands, and other formatting is consistent.
· Dollar signs are included in the first and last numbers of each column.
· Subtotals and totals are preceded by a single underline. Totals are followed by a double underline.
· Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read. 
§ All totals and subtotals in the competitor financial statements as well as the ratio calculations should be calculated using formulas.