Finalizing income Statement –
– Link rows 35 and 36 to the as reported data for quarterly purposes
– Calculate GAAP EPS and Adjusted EPS on rows 37 and 38 for quarterly purposes
– Link row 41 Dividends per share to the as reported data on a quarterly basis
– Calculate Dividend paid (dividends per share * shares outstanding) on row 40
– Calculate Adjusted EBI on row 46 for quarterly purposes
– Calculate NOPAT or Adjusted EBIT (1-t) on row 47 on a quarterly basis
– Link Capitalized interest on row 49 to as reported data on a quarterly basis
Annual Balance Sheet –
– Link the quarterly balance sheet to annual balance sheet like shown in cells AJ58, AK58 and AL58, Do it for years 2015-2020 and foe ALL balance sheet rows
– LEAVE the summing formulas in rows 61,64,67,73,78 and 84 as they are
– Make sure you include a check to ensure the balance sheet balances on row 88
Ratio analysis –
– Calculate all quarterly ratios that are requested below row 147 .
– After you have calculated all ratios I want 3 qualitative comments about the ratios based on the concepts learned on Wednesday (e.g. “this looks high/low”, “there is a big change in this ratio”, “I have a concern because…”, “This ratio doesn’t make sense” etc.). Just three qualitative comments that tell me that you understand what the ratios mean.
– Remember that ratios that include an income statement item compared to a balance sheet item, you have to multiply the income statement item by 4
– Also remember that most (if not all) the ratios that compare a balance sheet item with an income statement item you have to average the balance sheet item between the balances shown in this quarter and the last
– Any ratios that deal with Net income have to be calculated using ADJUSTED CORE NET INCOME. All other Income statement numbers are already adjusted.
– I have already calculated total Long Term Debt in row 97 for your debt ratios calculations
– I have already calculated Inventory Purchases for your days of payable ratio in row 98
– I have calculated an ROTE ratio (return on tangible equity) that we have not discussed in class on row 150-
– The Ratio analysis section is ALREADY formatted to show the proper presentation for the ratio.
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