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    ACC1AIS - Homework Exercises - Week 10: Excel Exercise 1 - Prepare Vertical Analysis

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    This document provides instructions for two Excel exercises analyzing the financial performance of two companies. The first exercise involves preparing a vertical analysis and graphs of operating data for Beach Ltd for 2019-2020. The second exercise involves transferring income statement and balance sheet data for Snick's Board Shop for 2018-2019 to Excel, conducting vertical and horizontal analysis, calculating financial ratios, and drawing graphs to analyze profitability, liquidity, and solvency.

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    ACC1AIS - Homework Exercises - Week 10: Excel Exercise 1 - Prepare Vertical Analysis

    Uploaded by

    Supto
    125 views3 pages
    This document provides instructions for two Excel exercises analyzing the financial performance of two companies. The first exercise involves preparing a vertical analysis and graphs of operating data for Beach Ltd for 2019-2020. The second exercise involves transferring income statement and balance sheet data for Snick's Board Shop for 2018-2019 to Excel, conducting vertical and horizontal analysis, calculating financial ratios, and drawing graphs to analyze profitability, liquidity, and solvency.

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    This document provides instructions for two Excel exercises analyzing the financial performance of two companies. The first exercise involves preparing a vertical analysis and graphs of operating data for Beach Ltd for 2019-2020. The second exercise involves transferring income statement and balance sheet data for Snick's Board Shop for 2018-2019 to Excel, conducting vertical and horizontal analysis, calculating financial ratios, and drawing graphs to analyze profitability, liquidity, and solvency.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    125 views3 pages

    ACC1AIS - Homework Exercises - Week 10: Excel Exercise 1 - Prepare Vertical Analysis

    Uploaded by

    Supto
    This document provides instructions for two Excel exercises analyzing the financial performance of two companies. The first exercise involves preparing a vertical analysis and graphs of operating data for Beach Ltd for 2019-2020. The second exercise involves transferring income statement and balance sheet data for Snick's Board Shop for 2018-2019 to Excel, conducting vertical and horizontal analysis, calculating financial ratios, and drawing graphs to analyze profitability, liquidity, and solvency.

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    ACC1AIS – Homework Exercises – Week 10

    Excel Exercise 1 – Prepare vertical analysis


    This exercise is required to be done in MS Excel environment. No manual/paper calculation is
    accepted.
    Operating data for Beach Ltd is presented here:

    2019 2020
    Sales $870,000 $900,000
    Cost of sales $460,000 $520,000
    Selling expenses $93,000 $140,000
    Administrative expenses $61,000 $65,000
    Income tax expense $76,800 $52,500
    Profit $179,200 $122,500

    Required

    1. Transfer the above data to an MS Excel worksheet.

    2. Within the MS Excel worksheet prepare a schedule to indicate a vertical analysis for 2019 and
    2020. The base amount for performing vertical analysis is the sales amount.

    3. In your worksheet draw graphs for 2019 and 2020 to show how expenses are distributed in 2019
    and 2020.

    Excel Exercise 2 – Prepare Vertical & Horizontal analysis, Calculate Ratios


    This exercise is required to be done in MS Excel environment. No manual/paper calculation is
    accepted.
    Presented below are Income statement, and Balance Sheet of Snick’s Board Shop for December
    2018 and December 2019.
    Snick's Board Shop
    Income Statemnt
    for the period ended

    31/12/2018 % Sales 31/12/2019 % Sales % Change


    Sales $ 28,000 $ 35,000
    Less: Cost of Goods Sold 13,000 16,000
    Gross Margin 15,000 19,000
    Expenses:
    Advertising $ 2,200 $ 2,500
    Depreciation 1,000 1,000
    Wages 5,000 6,000
    Supplies 300 450
    Utilities 800 9,300 1,600 11,550
    Net income $ 5,700 $ 7,450

    Page 1 of 3
    Snick's Board Shop
    Balance Sheet
    as of
    December-2018 % Assets December-2019 % Assets % Change
    Assets
    Current Assets:
    Cash $ 3,500 $ 4,600
    Inventory 5,750 6,500
    Supplies 250 9,500 500 11,600

    Equipment 8,000 10,900


    Less: Accumulated Depreciation 1,500 6,500 2,500 8,400
    Total $ 16,000 $ 20,000

    Liabilities and Stockholders' Equity


    Current Liabilities
    Accounts Payable $ 11,000 $ 7,500
    Payroll Liabilities 2,000 13,000 2,050 9,550

    Owner's Equity 3,000 10,450


    Total $ 16,000 $ 20,000

    1. Transfer the above Income Statement, and Balance Sheet to an Excel worksheet.

    2. In an Excel worksheet, create a vertical and horizontal analysis of the Income Statement. You are
    required to use appropriate Excel functions to provide the vertical and horizontal analysis. (Note: for
    the purpose of performing horizontal analysis the base year is 2018, for the purpose of performing
    vertical analysis of the income statement the base amount is the sales amount).

    3. In an Excel worksheet, create a vertical and horizontal analysis of the Balance Sheet. You are
    required to use appropriate Excel functions to provide the vertical and horizontal analysis. (Note: for
    the purpose of performing horizontal analysis the base year is 2018, for the purpose of performing
    vertical analysis of the balance sheet the base amount is total assets).

    4. In an Excel worksheet, draw graphs to visually indicate how expenses, assets and liabilities are
    distributed in 2018 and 2019.

    5. In an Excel worksheet calculate the following ratios for 2019:

    5.1 Profitability ratios:

    - Return on assets
    - Return on equity
    - Profit margin
    - Gross margin

    5.2 Liquidity ratios:

    - Current ratio
    - Quick ratio
    - Inventory turnover
    - Days in inventory ratio

    Page 2 of 3
    5.3 Solvency ratios:

    - Debt to total assets ratio

    6. In an Excel worksheet draw graphs to compare the relevant ratios to each other visually. Graphs
    should be effective, and easy to read and understand for decision making purposes.

    7. provide a brief explanation about the profitability of Snick’s board shop in 2018 and 2019.

    Page 3 of 3

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