Financial Accounting ASSIGNMENT

Anonymous
timer Asked: Oct 17th, 2018
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Question Description

I NEED SOMEONE GOOD WITH FINANCIAL ACCOUNTING. This is professional application#2 of the company. Ill upload all the instructions and everything needed. prior to this assignment I had done professional application #1 and this assignment will be related to the previous one.

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Locating Company Financial Information Using Primary Sources Company financial statements are available in two places: 1) Company website – Use Google. At the company website, look for links like Investor Information or Company Information or About Within this page look for Annual Report or SEC filings or Financial Information PDF files are often easiest to read, but WORD or EXCEL files may be available that will enable you to copy the information for financial statement analysis more easily. Use the HTML version only when you are looking up particular pieces of information. 2) SEC website at http://www.sec.gov 1. Select COMPANY FILINGS at top of page . 2. Your search will be quickest and most accurate if you use Fast Search with the Ticker Symbol for the company. Use Google to find the Ticker Symbol. Alternatively, you can type in the company name. If searching with the company name, use the most important keywords in the name and spell it in the most likely way without special characters. Try another spelling or a different spacing if you can’t find the company the first time. When you get the result list of companies (or perhaps people), look carefully through for the company you intend. Then check carefully after opening a document to be sure it really is the company you intend. 3. When you search by ticker (or select the company name), you will get a list of all SEC filings. To limit the filings, in the Filter Results row enter 10-K for the annual SEC filing. If you need other documents for another course, enter their form number. 4. Select the two most recent 10-Ks for this project. A 10-K must be filed within 2 months of the end of the company’s fiscal year, so a calendar year company will have its 2017 10-K filed in February 2018. Many of the companies used in Professional Application #1 have a fiscal year end in January. Use the two most recent 10-Ks, no matter what. 10-K/A is an amendment that updates a 10-K. Usually this provides additional information that is not related to the financial statements. If it is small in size, ignore it. Choose Documents if you want to see the full 10-K including all the non-financial statement information. Choose Interactive Data if you only want financial statements and/or footnotes or if you want to download financial information into an EXCEL spreadsheet. NOTE on Company Financial Information from Secondary Sources: There are many secondary sources of company financial information, but they are not acceptable as a substitute for primary sources. Some intermediaries summarize financial information into standard categories, so that the information doesn’t match what the company exactly issued in its financial statements. Sites such as yahoo finance and marketline are freely available on the Internet and useful for research about a company, but not for primary financial information. PUT YOUR NAME HERE Data FINANCIAL STATEMENT ANALYSIS PA2 From Balance Sheet Date of End of Fiscal Year Accounts Receivable Inventory Total Assets Common stockholders' equity From Income Statement Net (credit) sales Cost of goods sold (add each line of the income statement here) Net Income Net Income Attributable to your company Earnings per share From Statement of Owners' Equity Preferred Dividends Common Dividends Declared Subtotals to Calculate Average Accounts Receivable Average Inventory Average Total Assets Average Common stockholders' equity Financial Ratios LIQUIDITY Inventory turnover Days in inventory Accounts receivable turnover Average collection period PROFITABILITY Earnings per share Return on assets Asset turnover Return on common stockholders’ equity PROFITABILITY: VERTICAL ANALYSIS (Percentage of Net Sales) Net Sales Cost of Goods Sold [add each line item on the income statement here] HORIZONTAL ANALYSIS (GROWTH/DECLINE) Net Sales Cost of Goods Sold [add each line item on the income statement here] Most Current Year Last year Year Before that Professional Application #2 Financial Statement Analysis Due Date: at the end of the day, Saturday, November 10 In this project you will complete financial statement analysis for a U.S. public company for a two year period. You may use the Financial Statement Analysis Spreadsheet posted in D2L as a template to complete the steps below. Using your Professional Application #1 and your financial statement analysis, you will write about one specific ratio and apply it to your company. However, you need to complete the entire set of financial ratios as well. Step 1: Read Chapter 13 in your text Financial Accounting: Tools for Business Decision Making, 7th edition. Step 2: Find the most recent TWO annual reports (from the company website) and 10-Ks (from the SEC website). You must report the URL that will directly connect to the annual report or 10-K or to the page that has a link to the annual report or 10-K. If a company does not have a separate annual report from their 10-K, use the URL on the company website that provides the link to the 10-K. Include these links in the WORD document you submit for this project. Include these URLs as a part of your submissions for this project. a) URL that links to the company’s annual report / 10-K through the company’s own website b) URL that links directly to the 10-K at the SEC website Step 3: Download the EXCEL form of the company financial statements from the Interactive Data link to the most recent two 10-Ks in EDGAR at the SEC website. First click on View EXCEL Document and then download the spreadsheet. Step 4: Gather the following information from the SEC spreadsheet you downloaded in Step 3. See the Financial Analysis Clarification below to help you find the information you need. Income Statement data for three years: Each item on the income statement including at a minimum: net sales, cost of goods sold, interest expense, tax expense, net income*, earnings per share (diluted, for net income). Statement of Owners’ Equity data for three years: preferred dividends declared (if any), common (cash) dividends declared Balance Sheet data for three years: last date of the fiscal year, accounts receivable, inventory, total assets, total stockholders’ equity, non-controlling interest (if present), preferred stock (if present) Step 5: Use the information from Step 4 to calculate the following financial amounts or ratios for the most recent two years for your company. Definition of Ratios and Other Measures Name Inventory turnover Days in inventory Accounts receivable turnover Average collection period Earnings per share Return on assets Asset turnover Return on common stockholders’ equity Growth measures: • Growth(decline) in sales • Growth(decline) in net income Category Liquidity Liquidity Liquidity Liquidity Profitability Profitability Profitability Profitability Horizontal analysis Calculation Cost of goods sold / average inventory 365 / Inventory turnover Net credit sales / average net accounts receivable 365 / accounts receivable turnover DO NOT COMPUTE YOURSELF. (Net income – preferred dividends) / average common shares outstanding Net income* / Average total assets Net sales / Average total assets Net Income*/ Average stockholders’ equity*** (Current year amount – Base year amount)/Base year amount Textbook p. 661 Ill 13-16 p. 661 Ill 13-16 p. 661 Ill 13-16 p. 661 Ill 13-16 p.662 Ill 13-18 p.662 p.662 Ill 13-18 Ill 13-18 p.662 Ill 13-18 Ill. 13-10 1 • For example Growth(decline) in EPS Net sales 2017: 100 Net sales 2016: 80 Profitability Measures per dollar of sales Vertical Analysis Growth in sales = (100-80)/80 = 25% Divide each line item on the income statement by Net sales Ill. 13-2 Step 6 Select one ratio from the ones you have calculated above that relates to the strengths and weaknesses identified Step 7 Write a 2-3 page report that relates the financial statement analysis to the strengths, weaknesses, threats, and opportunities of the company. You should discuss each ratio, perhaps as a part of a group of ratios that make a common point. Remember to include inline references for quotes as well as a works cited list. Be sure to include the from Step 2 above. Grading Points 45 15 15 20 5 Criteria Complete financial statement analysis accurately Provide an appropriate interpretation of the financial statement ratio selected Relate the strengths, weaknesses of your company to the financial statement analysis Uses standard English construction and logical organization to clearly present ideas List URLs that connect to the annual reports and 10-Ks Financial Statement Analysis Clarifications Income Statement Issues Net Sales: Use the Sales, Revenue, Net Sales or Net Revenue figure. Include only sales to customers for the main line of business in products or services. Include membership revenue for membership-type stores (WalMart or Costco). Don’t include non-operating revenues such as interest or financing revenue or equity interest in investments etc. even if they are listed at the beginning of the income statement and included in Total Revenues. Net credit sales: Use the same number as you use in Net Sales, since companies do not generally disclose separately their cash sales and their on-account sales Earnings per Share: This is disclosed at the bottom of the income statement. Do not calculate Earnings per share.. If there is more than one Earnings per share number, use Diluted Earnings per share for Net Income or for Net Income attributable to your company. *Net Income: Most companies have a single net income figure at the bottom of the income statement. Some companies have majority-owned subsidiaries that have outside investors in those subsidiaries who share in the net income of those subsidiaries. If your company has “non-controlling interest,” you have two different net income figures to use, depending on the ratio involved. If the company has non-controlling interest, the income statement will be similar to the following: Net Income Income attributable to non-controlling interest Income attributable to ABC Company shareholders $1000 $24 $976 Use Net Income of $1000 in the ratio: Return on assets Use Income attributable to ABC Company shareholders of $976 in the ratio: Return on common stockholders’equity Balance Sheet Issues Accounts Receivable: Some retail companies don’t have any accounts receivable because their customers use only debit and bank credit cards. If there is no accounts receivable on the balance sheet, you can investigate by looking through the 2 footnotes for the key words “Accounts Receivable” or you can set this account to zero, since it must be immaterial to the company if it is not presented separately on the balance sheet. Common Stockholders’ Equity: This is the value of the company that is owned by its common shareholders. Do not use just the Common Stock account. The common stock account is the par value of the shares issued and NOT the value of the company owned by common shareholders. Total Stockholders’ Equity - Preferred stock (if any) – Noncontrolling interest (if any). Some companies will have a more complicated ownership structure, so match your company to one of the examples below. If your company has preferred stock, the stockholders’ equity section of the balance sheet will be similar to the following: Preferred Stock $5 Common Stock $10 Additional paid-in capital $50 Retained Earnings $1,000 Treasury Stock ($20) Accumulated other comprehensive income $40 Total shareholders’ equity $1,085 Common stockholders’ equity is Total shareholders’ equity less preferred stock= $1,115-$5 = $1,110 If your company has non-controlling interest, the stockholders’ equity section of the balance sheet will be similar to the following: Common Stock $10 Additional paid-in capital $50 Retained Earnings $1,000 Treasury Stock ($20) Accumulated other comprehensive income $40 Noncontrolling interest $30 Total shareholders’ equity $1,110 Common stockholders’ equity is Total shareholders’ equity less non-controlling interest= $1,110-$30=$1,080 If your company has preferred stock and non-controlling interest, the stockholders’ equity section of the balance sheet will be similar to the following: Preferred Stock $5 Common Stock $10 Additional paid-in capital $50 Retained Earnings $1,000 Treasury Stock ($20) Accumulated other comprehensive income $40 Noncontrolling interest $30 Total shareholders’ equity $1,115 Common stockholders’ equity is Total shareholders’ equity less non-controlling interest= $1,115-$5-$30=$1080 If your company has no preferred stock and no non-controlling interest, the stockholders’ equity section of the balance sheet will be similar to the following: Common Stock $10 Additional paid-in capital $50 Retained Earnings $1,000 Treasury Stock ($20) Accumulated other comprehensive income $40 Total shareholders’ equity $1,080 Common stockholders’ equity is Total shareholders’ equity = $1,080 Statement of Retained Earnings / Statement of Owners’ Equity Issues Preferred Dividends vs. Common Dividends: Companies can have more than one class of stock – preferred stock and common stock. Most companies do not have preferred stock, so they won’t have preferred dividends. But if there is 3 preferred stock, look for the preferred dividends on the Statement of Retained Earnings or the Retained Earnings column on the Statement of Stockholders’ Equity. Cash Dividends vs. Stock Dividends: Cash Dividends on common stock are distinguished from stock dividends, which change the shares of stock held by investors but doesn’t change their ownership interest. You are only interested in cash dividends. Check the Statement of Retained Earnings or the Total or Retained Earnings column on the Statement of Stockholders’ Equity. 4 Name: Divyaraj Rana (DJ), Professor: Barbara W. Scofield, Date: September 29th, 2018 Professional Application #1 Company overview In my research, I considered Lowes company (LOW). Lowes company is a U.S based habitat development seller. Moreover, it is the second biggest vendor in home growth across the globe. It is involved in the contribution of entire supplies for home ornamenting as well as offering services to clients. The services rendered to customers include home ornamenting, repair, preservation and modernizing of profitable structures. In this paper, I will be discussing the strengths, weaknesses opportunities and threats of Lowes company. According to the company’s own investigation of the SWOT, one of the prominent strengths of Lowes company is its exceptional CSR. In its records, I noted that it has won the power Idol award for nine times successively. That is from the year 2003 to 2011. It has the second largest bazaar split in the industry. These strengths can largely be attributed to the fact that its policies are well though-out. The company believes that if it can give extensive exposure to its products and services as well as using social media, it can give good impact to its potential clients. Taking a look at what professionals say about the company, I realized that their views agree to a large extent to what the company has documented in its SWOT analysis. Professionals believe that though the company is the top best trademark applicant, it has to put efforts to counter the growing competition from other firms offering similar services. They propose that online presentation and extensive sale through expansion is a great opportunity which the company can use to grow. When I talked to an inside source, the picture became more clear as he gave more insight into the company’s SWOT analysis and strategies laid out to counter the threats and take advantage of the opportunities. She hinted that one of the biggest weaknesses of the company is the decentralization of the major segments of the company. She believes that the company is the largest leader in habitat development and has unique products and services which will take the company to even greater heights. Taking a personal look at the company, I can see all the aspects that the professionals were referring to. I have occasionally visited the company for home ornaments and structures. It has unique products and it offers services with expertise. This so far has kept the company at the top. However with the rise in competition, the company has to diversify its products sale and service delivery . Communal accountability and well thought-out plans remain the biggest drivers of development at the company. Works cited www.sec.gov/Archives/edgar/data/898173/000089817317000091/orly-20161231x10xk.htm. https://www.fool.com/quote/nyse/lowes/low http://www.freeswotanalysis.com/retailing-swot/244-swot-analysis-of-lowes-nyse-low.html http://www.globalmarketsdirect.com/Report.aspx?ID=Lowes-Companies-Inc-LOW-Financialand-Strategic-SWOT-Analysis-Review&ReportType=Company_Report Interview with Lowe’s worker in the sales department ...
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Spartacus
School: Carnegie Mellon University

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Running head: LOWE’S COMPANY FINANCIAL ANALYSIS

Lowe’s Company financial analysis
Name
Institution

1

LOWE’S COMPANY FINANCIAL ANALYSIS

2

Introduction
Lowe’s company and its subsidiaries is a home improvement retailer with operations in
Canada, the United States, and Mexico. The company provides a line of products for repair,
maintenance, decorating, and remodeling. The company offers home improvement services in
different categories such as tools and hardware, building and lumber materials, fashion fixtures,
appliances, lawn and garden, millwork, kitchens, flooring, and electrical and rough plumbing
among others. The company also provides installation services by sourcing independent
contractors, out-of-warranty and in-warranty repair services, and extended protection services.
The company sells its services and products through its online sites, and mobile applications to
renters, professional customers, and homeowners (Lowe’s Companies, Inc., 2018).
Financial analysis- selecting a ratio
The financial strength of a company is critical to its corporate managers, lenders,
business owners, and investors. Efficient cost management is important to the success of
business enterprises. In determining financial strength and weakness of business, certain
consideration such as business objectives, time, the industry, economic ...

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Anonymous
Good stuff. Would use again.

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