These exercises will help you apply concepts to real companies’ financial statements to compare and contrast the consequences of the economic crisis across time and industries. Companies included in this series of exercises:
• Apple
• Caterpillar
• CNH Global
• CVS Caremark
• Dell
• Gap
• Hewlett-Packard
• J Crew
• John Deere
• McDonald's
• Nordstrom
• Rite Aid
• Saks
• Southwest Airlines
• Walgreens
Sources: Companies’ websites. All brands and product names are trademarks of their respective owners.
Click link for related resources:
Exercise 1: Balance Sheets and Financial Leverage
Exercise 2: Income Statements and Return on Assets
Exercise 3: Recent Cash Flow Activities Analyses
Exercise 4: DuPont Model and Financial Reporting Environment
Exercise 5: Receivables, Product Returns, and Ratio Analyses
Exercise 6: LIFO/FIFO Inventories and Ratio Analyses
Exercise 7: Debt, Leases, and Ratio Analyses
Exercise 1: Balance Sheets and Financial Leverage
Topics:
- Financial leverage comparisons
- Asset risk comparisons
- Meeting short-term obligations comparisons
- Overall financial strength of balance sheets
- Compare and contrast the effects of the financial crisis
Exercise Materials:
Exercise 1 [pdf]
Excel template 1 [xlsx] Excel template 1[xls]
Word template 1 [docx] Word template 1 [doc]
Videos:
Searching and Locating Annual Reports 1 [10 minutes]
Locating Stock Prices Using Big Charts [3 minutes]
Using Excel 1: Basics[26 minutes]
Exercise 2: Income Statements and Return on Assets
Topics:
- Sales growth comparisons
- Net profit comparisons
- Return on assets comparisons
- Compare and contrast the effects of the financial crisis
Exercise Materials:
Exercise 2 [pdf]
Excel template 2 [xlsx] Excel template 2 [xls]
Word template 2 [docx] Word template 2 [doc]
Videos:
Searching and Locating Annual Reports 1 [10 minutes]
Using Excel 1:Basics [26 minutes]
Exercise 3: Analyzing Recent Cash Flow Activities
Topics:
- Net cash from operations before interest and taxes comparisons
- Cash surplus (shortfall) after maintaining current capacity and paying debt and taxes comparisons
- Cash surplus (shortfall) before new financing and securities transactions comparisons
- New debt financing comparisons
- Compare and contrast the effects of the financial crisis
Exercise Materials:
Exercise 3 [pdf]
Excerpt: Analyzing Recent Cash Flows on Statement of Cash Flows [pdf]
Excel template 3 [xlsx] Excel template 3 [xls]
Word template 3 [docx] Word template 3 [doc]
Videos:
Searching and Locating Annual Reports 1 [10 minutes]
Using Excel 1:Basics [26 minutes]
Exercise 4: Financial Reporting Environment
Topics:
- Return on equity (ROE) comparisons
- DuPont model’s components of ROE comparisons
- Fourth quarter earnings releases
- Fourth quarter earnings conference calls
- Analyst reports
- Stock market’s reaction to information
- Compare and contrast the effects of the financial crisis
Exercise Materials:
Exercise 4 [pdf]
Excel template 4 [xlsx] Excel template 4 [xls]
Word template 4[docx] Word template 4 [doc]
Exercise 5: Receivables, Product Returns, and Ratio Analyses
Topics:
- Doubtful accounts allowances comparisons
- Receivables turnover comparisons
- Financial-statement consequences of adjusting allowance entries
- Product returns comparisons
- Replenishing and using returns allowances
- Compare and contrast the effects of the financial crisis
Exercise Materials:
Exercise 5 [pdf]
Excerpt: Revenue Recognition, Bad Debts, and Product Returns [pdf]
Excel template 5 [xlsx] Excel template 5 [xls]
Word template 5 [docx] Word template 5 [doc]
Exercise 6: LIFO/FIFO Inventories and Ratio Analyses
Topics:
- Inventories, turnover, and margin comparisons
- Consequences of converting LIFO-based ratios to FIFO-based ratios comparisons
- Effects of major events on inventories analyses
- Compare and contrast the effects of the financial crisis
Exercise Materials:
Exercise 6 [pdf]
Excel template 6 [xlsx] Excel template 6 [xls]
Word template 6 [docx] Word template 6 [doc]
Exercise 7: Debt, Leases, and Ratio Analyzes
Topics:
- Capitalizing operating leases
- Converting inventories from LIFO to FIFO accounting method
- Creating common size income statements with adjusted numbers
- Creating common size balance sheets with adjusted numbers
- Analyzing DuPont Model and other ratios based on adjusted numbers
- Compare and contrast the effects of the financial crisis
Exercise Materials:
Exercise 7 [pdf]
Excel template 7 [xlsx] Excel template 7 [xls]
Word template 7 [docx] Word template 7 [doc]
Videos:
Capitalizing Operating Leases[45 minutes]
Using Excel 2: Linking Cells Across Worksheets [9 minutes]
Exercise 8: Time to Reflect
Topics:
- What are the ten most important things you learned from the course?
- What criteria did you use to select and rank items for your top-ten list?
Exercise Materials:
Exercise 8 [pdf]
Word template 8 [docx] Word template 8 [doc]
