These exercises will help you apply concepts to real companies’ financial statements to compare and contrast their financial performance across industries and time. Companies included in this series of exercises:
• Alcoa
• Cisco Systems
• The Gap
• Google
• Hewlett-Packard
• Hydro
• JetBlue Airways
• John Deere & Company
• John Wiley & Sons
• Juniper Networks
• Komatsu
• Kroger
• McGraw Hill
• Peets Coffe & Tea
• Qantas Airways
• Rio Tinto
• Safeway
• Scania
• Southwest Airlines
• Startbucks
• Tim Horton
• Time Warner
• Whole Foods Market
• YUM! Brands
Sources: Companies’ websites. All brands and product names are trademarks of their respective owners.
Click link for related resources:
Exercise 1: Analyzing Balance Sheets
Exercise 2: Analyzing Income Statements
Exercise 3: Financial Reporting Environment
Exercise 4: Analyzing Cash-Flow Statements
Exercise 5: Receivables, Product Returns, and Ratio Analyses
Exercise 6: LIFO/FIFO Inventories and Ratio Analyses
Exercise 7: Leases and Ratio Analyses
Exercise 1: Analyzing Balance Sheets
Topics:
- Level 1: Analyzing Primary Elements - Financial Leverage
- Level 2: Analyzing Major Categories - Working Capital and Current Ratios
- Level 3: Analyzing Line Items - Common Balance Sheets and Asset Risks
- Overall Financial Strength of Balance Sheets Across Companies and Industries
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: Analyzing Income Statements
Topics:
- Level 1: Analyzing Comprehensive Income- CI-ROE
- Level 2: Analyzing Major Categories- ROE
- Level 3: Analyzing Significant Subcategories- DuPont Model
- Level 4: Analyzing Line Items- Common-Size Statements and Revenue Growth
- Overall Financial Performance Across Companies and Industries
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: Financial Reporting Environment
Topics:
- Fourth Quarter Earnings Conference Calls
- Analyst Reports
- Media Reports
- Stock Market Reaction
- Overall Financial Reporting Environment
Exercise Materials:
Exercise 3 [pdf]
Word template 3 [docx] Word template 3 [doc]
Exercise 4: Analyzing Cash-Flow Statements
Topics:
- Level 1: Big Picture Analysis of Operating, Investing, and Financing Subtotals
- Level 2: Determining and Analyzing Cash Surpluses and Shortfalls
- Level 3: Analyzing How Cash Shortfalls are Covered or Surpluses are Used
- Operating Cash-Flow Reconciliation Analysis
- Overall Cash Flow Conclusions
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]
Excel template 5 [xlsx] Excel template 5 [xls]
Word template 5 [docx] Word template 5 [doc]
Excerpt: Revenue Recognition, Bad Debts, and Product Returns [pdf]
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 inventory impairments and LIFO liquidations on 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: Leases and Ratio Analyzes
Topics:
- Capitalizing operating leases
- 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]
Present Values and Future Values [29 minutes] Includes links to present value tables
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]
