I’m attaching the assignment instructions along with the grading rubric. And excel spreadsheet. This assignment requires Word and Excel papers.

Please let me know if you feel the price needs to be adjusted prior to completing the work. 

Thanks 

Deliverable 3 – Evaluating Performance and Benchmarking

Competency

Appraise the financial health and performance of a company.

Scenario

The Corporate Director of Acquisitions has approached you to assist with preparing financial data to help identify a potential new acquisition for your company. They have narrowed down the target to two companies and need your help in selecting the best one. You agree to help and think that the best approach would be to take the two companies and prepare a vertical and horizontal analysis of both the income statement and balance sheets for two years of data.

Instructions

You discuss your plan with the director, and you both decide that you should create an Excel file containing four tabs, labeling the four tabs as follows:

· Tab1: “Income statement vertical analysis”

· Tab 2: “Income statement horizontal”

· Tab 3: “Balance sheet vertical analysis”

· Tab 4: “Balance sheet horizontal analysis”

In addition, you both decide it best to also create a Word document with your assessment of each company’s performance and support which company is the better acquisition target.

Financial Statements

Excel spread sheet will be attached

Company 1

All numbers in thousands

2018 2017

2,048,396 1,802,644

– –

–

Long Term Debt

– –

3,049,308 2,748,017

																																																																																																																																																																														Company #1
	Income Statement		Balance Sheet
			All numbers in thousands
	Revenue				2018				2017		Period Ending
	Total Revenue	14,134,732	12,866,757		Current Assets
	Cost of Revenue	9,510,238	8,668,505		Cash And Cash Equivalents	1,290,294	1,111,599
	Gross Profit	4,624,494	4,198,252		Short Term Investments	512																						–
	Operating Expenses		Net Receivables	87,868	75,154
	Selling General and Administrative	2,576,098	2,395,608		Inventory	1,641,735	1,512,886
	Total Operating Expenses	12,086,336	11,064,113		Other Current Assets	11,847	13,642
	Operating Income or Loss		2,048,396		1,802,644		Total Current Assets	3,151,157	2,813,049
	Income from Continuing Operations		Long Term Investments	712	1,288
	Total Other Income/Expenses Net	-7,676	-16,488		Property Plant and Equipment	2,382,464	2,328,048
	Earnings Before Interest and Taxes		Other Assets	187,718	166,966
	Interest Expense	-18,847	-19,569		Deferred Long Term Asset Charges
	Income Before Tax	2,040,720	1,786,156		Total Assets	5,722,051	5,309,351
	Income Tax Expense	677,967	668,502		Current Liabilities
	Net Income	1,362,753	1,117,654		Accounts Payable	1,059,844	1,021,735
Short/Current		Long Term Debt	84,973
	Other Current Liabilities	9,902	24,559
	Total Current Liabilities	1,926,402	1,752,506
311,994	396,493
	Other Liabilities	434,347	412,335
	Total Liabilities	2,672,743	2,561,334
	Stockholders’ Equity
	Preferred Stock
	Common Stock	3,796	3,919
	Retained Earnings	2,071,400	1,801,138
	Treasury Stock	-318,252	-272,755
	Capital Surplus	1,292,391	1,215,806
	Total Stockholder Equity		3,049,308		2,748,017
	Net Tangible Assets

Company 2

Income Statement Balance Sheet
All numbers in thousands All numbers in thousands
Revenue 2018 2017 Period Ending 2018 2017

Total Revenue

Current Assets

Cost of Revenue

Cash And Cash Equivalents

Gross Profit

Short Term Investments –

Operating Expenses Net Receivables

Selling General and Administrative

Inventory

Total Operating Expenses

Other Current Assets –

Operating Income or Loss

Total Current Assets

Income from Continuing Operations Long Term Investments – –
Total Other Income/Expenses Net

Property Plant and Equipment

Earnings Before Interest and Taxes 4,218,193 3,987,426

Interest Expense

–

Income Before Tax

Other Assets

Income Tax Expense

Deferred Long Term Asset Charges –

Net Income

Total Assets

Current Liabilities
Accounts Payable

– –

Other Current Liabilities –

Total Current Liabilities

Long Term Debt

Other Liabilities

Total Liabilities

Stockholders’ Equity
Preferred Stock – –

Common Stock

Retained Earnings –

Treasury Stock –

Capital Surplus – –

– -441,859

Total Stockholder Equity 5,048,600

Net Tangible Assets

Company #2
38,972,934	35,864,664
27,831,177	25,502,167	3,030,200	2,758,477
11,141,757	10,362,497	506,165
860,000	327,166
6,923,564	6,375,071	4,579,000	4,187,243
34,754,741	31,877,238	12,217
	4,218,193		3,987,426	8,469,200	8,485,727
-44,982	-130,838	5,255,200	5,006,053
Goodwill	97,600	100,069
-8,860	-64,295	Intangible Assets	144,900
4,173,211	3,856,588	504,000	321,266
1,113,413	1,248,640	6,558
3,059,798	2,607,948	14,326,000	14,058,015
2,644,100	2,488,373
Short/Current Long Term Debt
1,429,136
5,531,300	5,125,537
2,233,600	2,230,607
1,512,500	1,331,645
9,277,400	8,909,706
	5,048,600	628,009
4,962,159
	-441,859
Other Stockholder Equity
5,148,309
4,951,000	4,903,340

Company

1

All numbers in thousands

2018 2017

2,048,396 1,802,644

– –

–

Long Term Debt

– –

3,049,308 2,748,017

																																																																																																																																																																																																																				Company #1
	Income Statement		Balance Sheet
			All numbers in thousands
			Revenue																2018																2017				Period Ending
		Total Revenue	14,134,732	12,866,757
			Current Assets
		Cost of Revenue	9,510,238	8,668,505				Cash And Cash Equivalents	1,290,294	1,111,599
		Gross Profit	4,624,494	4,198,252				Short Term Investments	512																						–
			Operating Expenses				Net Receivables	87,868	75,154
		Selling General and Administrative	2,576,098	2,395,608				Inventory	1,641,735	1,512,886
		Total Operating Expenses	12,086,336	11,064,113				Other Current Assets	11,847	13,642
		Operating Income or Loss		2,048,396		1,802,644				Total Current Assets	3,151,157	2,813,049
		Income from Continuing Operations				Long Term Investments	712	1,288
		Total Other Income/Expenses Net	-7,676	-16,488				Property Plant and Equipment	2,382,464	2,328,048
		Earnings Before Interest and Taxes				Other Assets	187,718	166,966
		Interest Expense	-18,847	-19,569				Deferred Long Term Asset Charges
		Income Before Tax	2,040,720	1,786,156			Total Assets	5,722,051	5,309,351
		Income Tax Expense	677,967	668,502
			Current Liabilities
			Net Income	1,362,753	1,117,654				Accounts Payable	1,059,844	1,021,735
Short/Current				Long Term Debt	84,973
			Other Current Liabilities	9,902	24,559
			Total Current Liabilities	1,926,402	1,752,506
311,994	396,493
			Other Liabilities	434,347	412,335
		Total Liabilities	2,672,743	2,561,334
			Stockholders’ Equity
			Preferred Stock
			Common Stock	3,796	3,919
			Retained Earnings	2,071,400	1,801,138
			Treasury Stock	-318,252	-272,755
			Capital Surplus	1,292,391	1,215,806
		Total Stockholder Equity		3,049,308		2,748,017
			Net Tangible Assets

Company 2

Income Statement Balance Sheet
All numbers in thousands All numbers in thousands
Revenue 2018 2017 Period Ending 2018 2017

Total Revenue

Current Assets

Cost of Revenue

Cash And Cash Equivalents

Gross Profit

Short Term Investments –

Operating Expenses Net Receivables

Selling General and Administrative

Inventory

Total Operating Expenses

Other Current Assets –

Operating Income or Loss

Total Current Assets

Income from Continuing Operations Long Term Investments – –
Total Other Income/Expenses Net

Property Plant and Equipment

Earnings Before Interest and Taxes 4,218,193 3,987,426

Interest Expense

–

Income Before Tax

Other Assets

Income Tax Expense

Deferred Long Term Asset Charges –

Net Income

Total Assets

Current Liabilities
Accounts Payable

– –

Other Current Liabilities –

Total Current Liabilities

Long Term Debt

Other Liabilities

Total Liabilities

Stockholders’ Equity
Preferred Stock – –

Common Stock

Retained Earnings –

Treasury Stock –

Capital Surplus – –

– -441,859

Total Stockholder Equity 5,048,600

Net Tangible Assets

	Company #2
38,972,934	35,864,664
27,831,177	25,502,167	3,030,200	2,758,477
11,141,757	10,362,497	506,165
860,000	327,166
6,923,564	6,375,071	4,579,000	4,187,243
34,754,741	31,877,238	12,217
	4,218,193		3,987,426	8,469,200	8,485,727
-44,982	-130,838	5,255,200	5,006,053
		Goodwill	97,600	100,069
-8,860	-64,295			Intangible Assets	144,900
4,173,211	3,856,588	504,000	321,266
1,113,413	1,248,640	6,558
3,059,798	2,607,948	14,326,000	14,058,015
2,644,100	2,488,373
		Short/Current Long Term Debt
1,429,136
5,531,300	5,125,537
2,233,600	2,230,607
1,512,500	1,331,645
9,277,400	8,909,706
	5,048,600	628,009
4,962,159
	-441,859
		Other Stockholder Equity
5,148,309
4,951,000	4,903,340

IS Vertical Analysis

2018 2017 2018 2017 2018 2017 2018 2017
Revenue
Operating Expenses
Net Income

Income Statement Vertical Analysis
		COMPANY 1			COMPANY 2
Total Revenue
Cost of Revenue
Gross Profit
Selling General and Administrative
Total Operating Expenses
Operating Income or Loss
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest and Taxes
Interest Expense
Income Before Tax
Income Tax Expense

IS Horizontal Analysis

COMPANY 1 COMPANY 2

2018 2017

2018 2017 $ CHANGE % CHANGE

Revenue

Total Revenue
Cost of Revenue
Gross Profit

Operating Expenses

Selling General and Administrative
Total Operating Expenses
Operating Income or Loss
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest and Taxes
Interest Expense
Income Before Tax
Income Tax Expense

Net Income

Income Statement Horizontal Analysis
			$ CHANGE				% CHANGE

BS Vertical Analysis

Company #1 Company #2
Period Ending 2018 2017 2018 2017 2018 2017 2018 2017

Current Assets

Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Other Assets
Deferred Long Term Asset Charges

Current Liabilities

Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Liabilities

Stockholders’ Equity

Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity
Net Tangible Assets

Balance Sheet Vertical Analysis

Total Assets (BASIS)

Total Liabilities (BASIS)

Total Stockholder Equity (BASIS)

BS Horizontal Analysis

COMPANY 1 COMPANY 2

Period Ending 2018 2017 $ CHANGE % CHANGE 2018 2017 $ CHANGE % CHANGE

Current Assets
Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term Investments
Property Plant and Equipment
Goodwill

Intangible Assets

Other Assets
Deferred Long Term Asset Charges

Total Assets

Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Liabilities

Total Liabilities

Stockholders’ Equity
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity

Total Stockholder Equity

Net Tangible Assets

Balance Sheet Horizontal Analysis