Reference no: EM132476591

Common Size Balance Sheet

Question 1: provide a spreadsheet with common size balance sheets for the years ended November 30, 2017 and 2018. For 2018, each line item should be shown as a percentage of total assets on November 30, 2018. Likewise, for 2017, each item should be shown as a percentage of total assets on November 30, 2017. In your calculations, round each percentage to three digits. For example if cash as a percentage of total assets is .054029834, your answer should be shown as 5.4%. These numbers on the financial statements are rounded to the nearest million, so it is a bit silly to show calculations with more precision than the underlying data.

Common Size Income Statement

1. This requires a spreadsheet with common size income statements for the 2018 and 2017 fiscal years. You do not need to do 2016. In this case, your denominator will be Revenues. Again, remember to round.

Horizontal Analysis of both financial statements

1. This requires a horizontal analysis of the balance sheet and income statement, showing the percentage change from 2017 to 2018 (the dollar amounts, not the percentages you calculated in the common size statements). This is calculated as follows: (2018 amount - 2017 amount)/ 2017 amount
2. Thus, each line item on the balance sheet and income statement should show a percentage increase or decrease. A negative number, or decrease, can be formatted to show in parentheses, which is the preferable notation in accounting circles.

Ratios

Question 2: Calculate all "Summary of Analytical Measures," for Carnival Corp in 2018 (you do not need to do ratios for 2017).

Question 3: Because Carnival inventory sales are a small fraction of their revenues, do not calculate Inventory Turnover, Days Sales in Inventory, or Gross Profit. You also do not need to calculate EPS or Return on Common Stockholders' Equity

• In any place where the formula calls for an average, use the 2017 number plus the 2018 number divided by 2.
• The listed items should be submitted in an Excel file.
• Carnival 10-K data.xlsx.

Question 4: Finally, a similar ratio analysis will be provided after the first chat for Royal Caribbean Cruise Lines. Compare your results from Carnival with RCL on a separate Word document. Your analysis must address at least three key ratios or trends that are similar and three that are different, as well as what those differences mean. You will notreceive full credit if you discuss dollars instead of ratios, and you must interpret, not just list, your results.