Annual Report Project - Section 3
Maree29
ACC-616-ARPSection3.pptxACC-616-O500
Grand Canyon University
Dr. Elaine Gregory, CPA, CFE
ARP – Section 3: Horizontal/Vertical Analysis and Summary
https://www.loom.com/share/fcc09b9d95e240cb9ef19f9964149dc5
We are called to witness the depth of both the wisdom and knowledge of God Romans 11:33
ARP Section 3 – Horizontal/Vertical Analysis and Summary
Prepare Horizontal and Vertical Analysis for 3 years of Income Statements and Balance Sheets
Summarize financial strengths and weaknesses
Horizontal and Vertical Analysis
https://www.youtube.com/watch?v=n5J7DeBb--s
https://www.youtube.com/watch?v=OT1BVZPNfks
Requirements – Process Step 1: Develop Analysis
Excel Spreadsheet is provided for you to develop your analysis in Announcements
This spreadsheet will be used for ARP – Section 3, 4, and 5, and 8
Hints:
Do not ‘cut and paste’ the data
Do not include .00. Instead use the whole numbers.
List years in descending order
Embed the calculations (sums) in the cell
Include the reference
Example of a partial Income Statement (Statement of Earnings) for Nordstrom for 2019 and 2018
Requirements – Process Step 2: Summarize results
Ignore the minimum word requirements. Instead, focus on a thorough analysis of the content of the paper.
Suggested headers and length:
Include a cover sheet
Introduction and Overview of Company - ½ page. Remember an introduction introduces us to the assignment.
Overview of Company – ½ page. Review your chosen company with demographics.
Horizontal and Vertical Analysis: 1 page overview of what these analysis are and why companies (especially your company) find value in them. Align this to your company and not in general.
Horizontal Analysis: 1-2 pages. Deep dive into both the Income Statement and Balance Sheet. Reviewing the analysis, how is this addressed in the SEC 10K Report as to Notes to Financial Statements or the MD&A.
Vertical Analysis: 1-2 pages. Deep dive into both the Income Statement and Balance Sheet. Reviewing the analysis, how is this addressed in the SEC 10K Report as to Notes to Financial Statements or the MD&A.
Requirements – Process Step 2: Summarize results
Strengths and Weaknesses of [name of your company] – 2 pages. Focus on the trends over the years, review the reports to shareholders, other industry information (Forbes, etc.) that help to explain each.
Strengths
Weaknesses
Conclusion: ½ page. Summarize your paper with 2-3 highlights that have significance.
References – Separate Page, APA Format!
Rubric: Grading Expectations
Horizontal and Vertical Analysis company's prior three years income statement and balance sheet
Summary Analysis
Paper Format, Writing, and APA
40%
30%
30%
Additional notes
Provide analysis beyond numbers…what was the rationale behind the results?
What relationships exist between accounts that may correlate the results with the information provided by the company?
Include supplemental schedules (ie: Tables or Figures) that support your arguments.
Include a minimum of 3 sources along with your references to the SEC Form 10K reports.
Submit both the excel spreadsheet AND the paper
Sources: Appropriate versus Not Appropriate
Appropriate
Textbooks,
Texts from Credible Authors,
Scholarly Peer-Reviewed Journals,
Practitioner Magazines,
Government/Trade Sites
Corporate Websites
NOT Appropriate
Wikipedia, Investopedia, Motley Fool, Technopedia
Open source, lacking expert review
Caveat: If the site has a reference cited, you can look ‘that’ source up and use it if it is correct.
CourseHero, Scrib.com, Chegg.com (plagiarism)
Journal entry from a scholarly journal or a trade magazine:
Phua, F. T. T. (2018) The role of organizational climate in socially embedding construction firms’ sustainability goals. Construction Management & Economics, 36, 409-521. doi:10.1080/1446193.2018.1424348
SEC 10-K Report: (Starbucks Corporation):
U.S. Securities and Exchange Commission (2018). 2018 Annual SEC Form 10-K Report, Starbucks Corporation. Retrieved from: https://www.sec.gov/Archieves/edgar/data/829224/000082922418000052/sbux-9302018x10xk.htm
Textbook:
Young, S.D., Cohen, J., & Bens, D.A. (2019). Corporate financial reporting and analysis: A global perspective. (4th ed.). Hoboken, NJ: John Wiley & Sons Inc.
Hanging Indent!!!!!
Article from the Web where there is an ‘Author’:
Rivas, T. (2020, June). Starbuck’s sales are coming back, but the outlook is worse than feared. Barron’s. Retrieved from https://www.barrons.com/articles/starbucks-earnings-were-worse-than-expected-so-is-the-outlook-51591795658
Article from the Web where a company is the ‘Author’:
Starbucks Company (2020, June). Starbucks publishes 2019 global social impact report. Retrieved from https://stories.starbucks.com/stories/2020/starbucks-publishes-2019-global-social-impact-report/
Another Example:
Starbucks Company (n.d.). Company Information. Retrieved from https://www.starbucks.com/about-us/company-information
Italicize the website
Italicize the article name
