Horizontal and vertical analyses

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Choose a publicly traded company. Download the latest available financial reports (balance sheet, income statement, statement of cash flows, and statement of owners' equity). CLO1, CLO2, CLO3, CLO4 Activities: Draw two (2) graphs either on paper or in Excel. On the X-axis write the "Years” for the past three to five years (i.e. 2008, 2009, 2010, 2011, 2012, PLUS your forecast shown in dotted lines for 2013 and 2014) , and on the Y-axis write dollar ($) amounts for the following: On GRAPH 1 (CLO1, and CLO2) Sales (either Total Sales, or Net Sales) and COGS (Cost of Goods Sold) On GRAPH 2 (CLO3, CLO4, CLO5) Net Income (also referred to as Net Profit, or the bottom line) Calculate the annualized percentage change in Sales over the last three (3) to five (5) years. (CLO2) Carry out "horizontal” and "vertical” analysis on the balance sheet and financial statement for the last two consecutive years. On each line indicate if the entry has improved, stayed the same, or deteriorated. For example if "sales” has increased by ten (10%) that is an improvement. But if COGS increased by twenty (20) percent that might be a bad sign unless there are other reasons. (CLO2) Calculate twenty different ratio analysis for the last two consecutive years and indicate if each ratio has improved, stayed the same, or deteriorated. See Exhibit 13.16 in textbook and/or (CLO1, CLO3) Average annual P/E ratio of the company over the past three to five years. (CLO3) SUMMARY in APA Format - What is your overall opinion about the strength and weaknesses of this company's sales, profitability, future stock price, risk, and growth rate. Please explain and validate your comments by providing clear and explicit numbers and reasons. (CLO3, CLO4, CLO6) Would you buy the shares of this company for yourself, and why?

NOTE: PLEASE PROVIDE HORIZONTAL & VERTICAL ANALYSES.

Reference no: EM131444246

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