Excel Project: Part III Instructions
Common Sized Balance Sheets (Tabs 12), Common Sized Income Statements (Tab 13), Horizontal Analysis Balance Sheets (Tab 14), Horizontal Analysis Income Statements (Tab 15), and Projected Financial Statements (Tabs 16-18)
· Continue in the same Excel workbook prepared in Week 4, adding the following tabs:
· The 12th tab in your Financial Statement Analysis Template must be labeled Common Sized Balance Sheets.
· Set-up like the Historical Balance Sheets (Tab 3), this worksheet should use formulas to calculate the common sized percentages, linking to the Historical Balance Sheets for the calculations. “Total Assets” should be used as the base for all common sized calculations on the Balance Sheets. Common sized percentages should be calculated for all three historical years presented.
· See Exhibit A for a partial example of this tab.
· The 13th tab in your Financial Statement Analysis Template must be labeled Common Sized Income Statements.
· Set-up like the Historical Income Statements (Tab 2), this worksheet should use formulas to calculate the common sized percentages, linking to the Historical Income Statements for the calculations. “Revenue” or “Total Revenue” (depending on your company) should be used as the base for all common sized calculations on the Income Statements. Common sized percentages should be calculated for all three historical years presented.
· The 14th tab in your Financial Statement Analysis Template must be labeled Horizontal Analysis of Balance Sheets.
· Start by copying and pasting the Historical Balance Sheets from Tab 3 to this worksheet. Then, add dollar and percentage change columns between each of the set of historical years.
· See Exhibit B for an example of this tab.
· The 15th tab in your Financial Statement Analysis Template must be labeled Horizontal Analysis of Income Statements.
· Start by copying and pasting the Historical Income Statements from Tab 2 to this worksheet. Then, add dollar and percentage change columns between each of the set of historical years.
· The 16th tab in your Financial Statement Analysis Template must be labeled Projected Income Statements. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report.
· The 17th tab in your Financial Statement Analysis Template must be labeled Projected Balance Sheets. Three years of projected statements should be included. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report.
· The 18th tab in your Financial Statement Analysis Template must be labeled Projected Statement of Cash Flows. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report.
· Other information relating to projected tabs:
· Projections should be based on research performed on your company and its industry. Use historical, trend, ratio data and cu
ent and future economic projections as well as information from the company’s MD&A to aid in preparing projections.
· Clearly state your assumptions in a text box at the bottom of each tab. Cite sources for assumptions based on research.
· The statements should be consistent, reasonable, and accurate. Areas that will be checked for accuracy include:
· The Balance Sheets should balance for all years presented.
· Retained earnings should be properly calculated using the prior year’s balance, net income, and dividends.
· The Ending Cash Balance on the Statement of Cash Flows should agree to the Cash Balance shown on the Balance Sheet for the same year.
· Net Income on the Income Statements should match what is reported on the top of the Statement of Cash Flows (if indirect method is used).
· Other instructions:
· The Excel workbook should be professionally formatted. Professional formatting includes:
· All numbers are formatted similarly. The use of decimals, commas for thousands, and other formatting is consistent.
· Dollar signs are included in the first and last numbers of each column.
· Subtotals and totals are preceded by a single underline. Totals are followed by a double underline.
· Line descriptions are indented
olded in a manner that makes the spreadsheet easy to read.
· All common sized, horizontal analysis, and projection items should be calculated using formulas. Totals and subtotals should also be calculated using formulas. For an example of which cells may need formulas, please see Exhibits A & B.
This assignment is due by 11:59 p.m. (ET) on Monday of Module/Week 6.
ACCT 370
Exhibit A: Example Common Sized Balance Sheets (Tab 12, Partial View)
(IMPORTANT NOTE: Only Partial Balance Sheet shown. Your Balance Sheet should include Liabilities and Stockholders’ Equity as well.)
Exhibit B: Example Horizontal Analysis of Balance Sheets (Tab 14, Partial View)
(IMPORTANT NOTE: Only Partial Balance Sheet shown. Your Balance Sheet should include Liabilities and Stockholders’ Equity as well.)
Company Information
ACCT 370 Excel Project
THE HOME DEPOT, INC.
Largest Home Improvement retailer in the United States
Cl Tina
Company Name THE HOME DEPOT, INC.
Ticker Symbol NYSE: HD
Industry Retailing
Products and Services Offered Home appliances, tools, hardware, builders hardware, lumber, building materials, paint, plumbing, flooring, garden supplies & plants
Major Competitors Mohawk Industries, Berkshire Hathaway, Lowe's, Walmart, Amazon, Williams-Sonoma and Bed Bath & Beyond
Historical Income Statements
THE HOME DEPOT, INC.
Historical Income Statements
As on January 31, 2021, Fe
uary 2, 2020 and Fe
uary 3, 2019
In Millions
31-Jan-21 2-Feb-20 3-Feb-19
Net sales $132,110.00 $110,225.00 $108,203.00
Cost of sales 87,257.00 72,653.00 71,043.00
Gross profit 44,853.00 37,572.00 37,160.00
Operating expenses:
Selling, general and administrative 24,447.00 19,740.00 19,513.00
Depreciation and amortization 2,128.00 1,989.00 1,870.00
Impairment loss - 0 - 0 247.00
Total operating expenses 26,575.00 21,729.00 21,630.00
Operating income 18,278.00 15,843.00 15,530.00
Interest and other (income) expense:
Interest and investment income (47.00) (73.00) (93.00)
Interest expense 1,347.00 1,201.00 1,051.00
Other - 0 - 0 16.00
Interest and other, net 1,300.00 1,128.00 974.00
Earnings before provision for income taxes 16,978.00 14,715.00 14,556.00
Provision for income taxes 4,112.00 3,473.00 3,435.00
Net earnings $12,866.00 $11,242.00 $11,121.00
Fields Using Formulas
Historical Balance Sheets
THE HOME DEPOT, INC.
Historical Balance Sheets
As on January 31, 2021, Fe
uary 2, 2020 and Fe
uary 3, 2019
In Millions
Assets 31-Jan-21 2-Feb-20 3-Feb-19
Cu
ent assets:
Cash and cash equivalents $7,895.00 $2,133.00 $1,778.00
Receivables, net 2,992.00 2,106.00 1,936.00
Merchandise inventories 16,627.00 14,531.00 13,925.00
Other cu
ent assets 963.00 1,040.00 890.00
Total cu
ent assets 28,477.00 19,810.00 18,529.00
Net property and equipment 24,705.00 22,770.00 22,375.00
Operating lease right-of-use assets 5,962.00 5,595.00 - 0
Goodwill 7,126.00 2,254.00 2,252.00
Other assets 4,311.00 807.00 847.00
Total assets 70,581.00 51,236.00 44,003.00
Cu
ent liabilities:
Short-term debt - 0 974.00 1,339.00
Accounts payable 11,606.00 7,787.00 7,755.00
Accrued salaries and related expenses 2,463.00 1,494.00 1,506.00
Sales taxes payable 774.00 605.00 656.00
Defe
ed revenue 2,823.00 2,116.00 1,782.00
Income taxes payable 193.00 55.00 11.00
Cu
ent installments of long-term debt 1,416.00 1,839.00 1,056.00
Cu
ent operating lease liabilities 828.00 828.00 - 0
Other accrued expenses 3,063.00 2,677.00 2,611.00
Total cu
ent liabilities 23,166.00 18,375.00 16,716.00
Long-term debt, excluding cu
ent installments 35,822.00 28,670.00 26,807.00
Long-term operating lease liabilities 5,356.00 5,066.00 - 0
Defe
ed income taxes 1,131.00 706.00 491.00
Other long-term liabilities 1,807.00 1,535.00 1,867.00
Total liabilities 67,282.00 54,352.00 45,881.00
Common Stock 89.00 89.00 89.00
Paid-in capital 11,540.00 11,001.00 10,578.00
Retained earnings 58,134.00 51,729.00 46,423.00
Accumulated other comprehensive loss (671.00) (739.00) (772.00)
Treasury stock (65,793.00) (65,196.00) (58,196.00)
Total stockholders’ equity (deficit) 3,299.00 (3,116.00) (1,878.00)
Total liabilities and stockholders’ equity $70,581.00 $51,236.00 $44,003.00
Fields Using Formulas
Historical Statement of Cash Fl
THE HOME DEPOT, INC.
Historical Statement of Cash Flows
As on January 31, 2021, Fe
uary 2, 2020 and Fe
uary 3, 2019
In Millions
31-Jan-21 2-Feb-20 3-Feb-19
Cash Flows from Operating Activities:
Net earnings $12,866.00 $11,242.00 $11,121.00
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization 2,519.00 2,296.00 2,152.00
Stock-based compensation expense 310.00 251.00 282.00
Impairment loss - 0 - 0 247.00
Changes in receivables, net (465.00) (170.00) 33.00
Changes in merchandise inventories (1,657.00) (593.00) (1,244.00)
Changes in other cu
ent assets 43.00 (135.00) (257.00)
Changes in accounts payable and accrued expenses 5,118.00 32.00 870.00
Changes in defe
ed revenue 702.00 334.00 80.00
Changes in income taxes payable (149.00) 44.00 (42.00)
Changes in defe
ed income taxes (569.00) 202.00 26.00
Other operating activities 121.00 184.00 (103.00)
Net cash provided by operating activities 18,839.00 13,687.00 13,165.00
Cash Flows from Investing Activities:
Capital expenditures (2,463.00) (2,678.00) (2,442.00)
Payments for businesses acquired, net (7,780.00) - 0 (21.00)
Other investing activities 73.00 25.00 47.00
Net cash used in investing activities (10,170.00) (2,653.00) (2,416.00)
Cash Flows from Financing Activities:
Repayments of short-term debt, net (974.00) (365.00) (220.00)
Proceeds from long-term debt, net of discounts and premiums 7,933.00 3,420.00 3,466.00
Repayments of long-term debt (2,872.00) (1,070.00) (1,209.00)
Repurchases of common stock (791.00) (6,965.00) (9,963.00)
Proceeds from sales of common stock 326.00 280.00 236.00
Cash dividends (6,451.00) (5,958.00) (4,704.00)
Other financing activities (154.00) (140.00) (153.00)
Net cash used in financing activities (2,983.00) (10,798.00) (12,547.00)
Change in cash and cash equivalents 5,686.00 236.00 (1,798.00)
Effect of exchange rate changes on cash and cash equivalents 76.00 119.00 (19.00)
Cash and cash equivalents at beginning of year 2,133.00 1,778.00 3,595.00
Cash and cash equivalents at end of year $7,895.00 $2,133