accounting project

Financial Statement Analysis Project Instructions

A. Key Items

Points: 125 Points

Due Date: Sunday, Oct 27 2024 @ 11:59pm

Deliverables: 3 files submitted via Canvas by the due date

1. PowerPoint file for your presentation. Google Slides will not be accepted. (Max Points = 90)
2. Excel file to show your work and computations. Google Sheets will not be accepted. (Max Points = 15)
   Files must be saved following this naming convention: Lastname_first name_project.xlsx and Lastname_firstname_project.ppt (example: lopez_enrique_project.xls

3. Zoom recording (Max Points = 15)

Record yourself in Zoom giving the presentation. Please record yourself with BOTH AUDIO AND VIDEO ON! I want to see your face and hear your voice while you are presenting. Copy and paste the Zoom recording link (or download the file) in the comments box when you submit your project. You need to do this by the due date. Any late submissions will have 10 points taken off per day.

Each presentation should be around 10 to 12 minutes (max).

B. Companies

First, pick 2 public companies within the same industry from the U.S. Fortune 100 Company List. See link below. These two companies need to be competitors of each other.

Fortune 100 List .pdf Download Fortune 100 List .pdf

Second, choose one out of the following 3 types of analysis: excel, presentation and video submission

1. Horizontal/comparative & trend analysis (described on page 606 – page 610 in your textbook)
2. Vertical/common-size analysis (described on page 610 – page 613 in your textbook)
3. Ratio analysis (described on page 614 – page 619)

After you have chosen your companies, go on each company’s website and find:

(you can also find all public company financial reports on

https://www.sec.gov/search-filings)Links to an external site.

1. Investors Relations
2. Then click on SEC Filings
3. Then filter for Annual Reports/10K
4. Then download the PDF file and the XLS files
5. Read Item 7 and Item 8 from the 10K PDF file
6. Format and compute a)$ and % changes or b)common size % or C) ratios from the XLS file
7. Then copy and paste the excel work into PowerPoint for your presentation
8. Create charts/graphs that are applicable and complementary to your analysis
9. Don’t make your slides too busy. Focus on key points, conclusions and take-aways
10. The slides should be polished, professional and succinct

C. Analysis

Things to consider while you are analyzing the financial statements:

1. Balance Sheet Analysis

In your comparative balance sheet analysis, some of the things you want to look at are:

• How are the assets financed? How much by debt and how much by equity?
• What are the major % increases on the balance sheet and why?
• If there is a major change in cash, take a look at the statement of cash flows to explain the movement.
• Did debt increase? Did equity increase? What’s causing these major changes?

2. Income Statement Analysis

• Why is net income up or down? Is it related to lower or higher cost of sales/revenues and/or higher or lower operating expenses?
• Any specific areas of revenue that has driven an increase or decrease from prior year? What about specific expenses/costs that have driven change in expenses?
• What is the % of net income for both companies? Which company has a higher % of net income and why?

3. Ratio Analysis

In your ratio analysis, you must calculate and explain for both companies: current ratio, working capital, debt ratio, equity ratio, gross margin, and profit margin and PE ratio. If the company has account receivables and inventory, then you must also include AR turnover and Inventory turnover.

For all analysis, first perform INTRA-COMPANY analysis, then INTER-COMPANY OR COMPETITOR analysis. Lastly, summarize your findings and form conclusions and recommendations.

10/21/24, 8:39 PM
Examples of Previous Student Projects: 2024 Fall – ACCTG 2 (1022) [1..17] – Lopez – (O)
Examples of Previous Student Projects
Here are the best examples from the previous two semesters.
These slides had the right level of detail and information. The
magic number of slides for a 10 minute presentation was 12 to 15
slides. This was for an individual presentation. Any more than that,
your audience may lose interest and you won’t have enough time.
Any less than that meant the analysis was not thorough enough for
this assignment.
PowerPoint Examples
AMD vs. NVIDIA.pptx (Ratio Analysis)
(https://online.smc.edu/courses/71155/files/16891349/download?wrap=1)
(https://online.smc.edu/courses/71155/files/16891349/download?download_frd=1)
(https://online.smc.edu/courses/71155/files/16891349/download?wrap=1) Southwest vs. Delta.pptx
(Horizontal Analysis) (https://online.smc.edu/courses/71155/files/16891346/download?wrap=1)
(https://online.smc.edu/courses/71155/files/16891346/download?download_frd=1)
Delta vs. Southwest.pptx (Horizontal Analysis)
(https://online.smc.edu/courses/71155/files/16891345/download?wrap=1)
(https://online.smc.edu/courses/71155/files/16891345/download?download_frd=1)
IBM vs. Microsoft.pptx (https://online.smc.edu/courses/71155/files/16891350?wrap=1)
(https://online.smc.edu/courses/71155/files/16891350/download?download_frd=1) (Common-Size
Analysis)
Video Presentation Examples
1. Rite Aid vs. CVS
https://online.smc.edu/courses/71155/pages/examples-of-previous-student-projects?module_item_id=4085552
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10/21/24, 8:39 PM
Examples of Previous Student Projects: 2024 Fall – ACCTG 2 (1022) [1..17] – Lopez – (O)
0:00 / 15:57
2. AMD vs. NVIDIA
0:00 / 17:02
(https://online.smc.edu/courses/71155/files/16891351/download?wrap=1)
https://online.smc.edu/courses/71155/pages/examples-of-previous-student-projects?module_item_id=4085552
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10/21/24, 8:38 PM
Financial Statement Analysis Project Instructions: 2024 Fall – ACCTG 2 (1022) [1..17] – Lopez – (O)
Financial Statement Analysis Project
Instructions
Santa Monica College
Accounting 2 – Fall 2024
Financial Statement Analysis Project Instructions
A. Key Items
Points: 125 Points
Due Date: Sunday, Oct 27 2024 @ 11:59pm
Deliverables: 3 files submitted via Canvas by the due date
1. PowerPoint file for your presentation. Google Slides will not be accepted. (Max Points = 90)
2. Excel file to show your work and computations. Google Sheets will not be accepted. (Max Points
= 15)
1. Files must be saved following this naming convention: Lastname_first name_project.xlsx and
Lastname_firstname_project.ppt (example: lopez_enrique_project.xls
3. Zoom recording (Max Points = 15)
Record yourself in Zoom giving the presentation. Please record yourself with BOTH AUDIO AND
VIDEO ON! I want to see your face and hear your voice while you are presenting. Copy and paste
the Zoom recording link (or download the file) in the comments box when you submit your project.
You need to do this by the due date. Any late submissions will have 10 points taken off per day.
Each presentation should be around 10 to 12 minutes (max).
B. Companies
First, pick 2 public companies within the same industry from the U.S. Fortune 100 Company List. See
link below. These two companies need to be competitors of each other.
https://online.smc.edu/courses/71155/pages/financial-statement-analysis-project-instructions?module_item_id=4085551
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10/21/24, 8:38 PM
Financial Statement Analysis Project Instructions: 2024 Fall – ACCTG 2 (1022) [1..17] – Lopez – (O)
Fortune 100 List .pdf (https://online.smc.edu/courses/71155/files/16891343?wrap=1)
(https://online.smc.edu/courses/71155/files/16891343/download?download_frd=1)
Second, choose one out of the following 3 types of analysis:
1. Horizontal/comparative & trend analysis (described on page 606 – page 610 in your textbook)
2. Vertical/common-size analysis (described on page 610 – page 613 in your textbook)
3. Ratio analysis (described on page 614 – page 619)
After you have chosen your companies, go on each company’s website and find:
(you can also find all public company financial reports on https://www.sec.gov/search-filings)
(https://www.sec.gov/search-filings)
1. Investors Relations
2. Then click on SEC Filings
3. Then filter for Annual Reports/10K
4. Then download the PDF file and the XLS files
5. Read Item 7 and Item 8 from the 10K PDF file
6. Format and compute a)$ and % changes or b)common size % or C) ratios from the XLS file
7. Then copy and paste the excel work into PowerPoint for your presentation
8. Create charts/graphs that are applicable and complementary to your analysis
9. Don’t make your slides too busy. Focus on key points, conclusions and take-aways
10. The slides should be polished, professional and succinct
C. Analysis
Things to consider while you are analyzing the financial statements:
1.
Balance Sheet Analysis
In your comparative balance sheet analysis, some of the things you want to look at are:
How are the assets financed? How much by debt and how much by equity?
What are the major % increases on the balance sheet and why?
If there is a major change in cash, take a look at the statement of cash flows to explain the
movement.
Did debt increase? Did equity increase? What’s causing these major changes?
https://online.smc.edu/courses/71155/pages/financial-statement-analysis-project-instructions?module_item_id=4085551
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10/21/24, 8:38 PM
2.
Financial Statement Analysis Project Instructions: 2024 Fall – ACCTG 2 (1022) [1..17] – Lopez – (O)
Income Statement Analysis
Why is net income up or down? Is it related to lower or higher cost of sales/revenues and/or
higher or lower operating expenses?
Any specific areas of revenue that has driven an increase or decrease from prior year? What
about specific expenses/costs that have driven change in expenses?
What is the % of net income for both companies? Which company has a higher % of net income
and why?
3.
Ratio Analysis
In your ratio analysis, you must calculate and explain for both companies: current ratio, working
capital, debt ratio, equity ratio, gross margin, and profit margin and PE ratio. If the company has
account receivables and inventory, then you must also include AR turnover and Inventory turnover.
For all analysis, first perform INTRA-COMPANY analysis, then INTER-COMPANY OR COMPETITOR
analysis. Lastly, summarize your findings and form conclusions and recommendations.
Late assignment will be deducted 10 points per day up to 10 days.
After 10 days, late assignment will NOT be accepted.
I look forward to your presentation and your project. It’s YOUR time to shine!
This project takes a lot of time and effort – do NOT wait till the last minute to work on it
Feel free to schedule time to meet with me ahead of time for questions you may have
https://online.smc.edu/courses/71155/pages/financial-statement-analysis-project-instructions?module_item_id=4085551
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