Excel Spreadsheet Assignment

Competency
Appraise the financial health and performance of a company.

Scenario
The Corporate Director of Acquisitions has approached you to assist with preparing financial data to help identify a potential new acquisition for your company. They have narrowed down the target to two companies and need your help in selecting the best one. You agree to help and think that the best approach would be to take the two companies and prepare a vertical and horizontal analysis of both the income statement and balance sheets for two years of data.

Instructions
You discuss your plan with the director, and you both decide that you should create an Excel file containing four tabs, labeling the four tabs as follows:

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Tab1: “Income statement vertical analysis”
Tab 2: “Income statement horizontal”
Tab 3: “Balance sheet vertical analysis”
Tab 4: “Balance sheet horizontal analysis”
In addition, you both decide it best to also create a Word document with your assessment of each company’s performance and support which company is the better acquisition target.

SAMPLE SOLUTION

After an undertaking of the four tabs: income statement vertical analysis, income statement horizontal, balance sheet vertical analysis, balance sheet horizonal analysis were all obtained. The vertical income statement showed that company A was making more revenues both for the financial 2017 as well | PLACE YOUR ORDER NOW AT studenthelp.contentfence.com | had a net income of $ 3, 059,798 while that of company B was 2,607,948. This implied a sales revenue of 7.85% and 7.27% respectively. A similar trend was obtained for the horizonal income | PLACE YOUR ORDER NOW AT studenthelp.contentfence.com | the vertical balance sheet also showed that company A had more total assets as compared to company B. the net tangible assets both for the financial year 2017 and 2018 were higher than that of tangible assets for company B. In terms of liability, the total current liability for company A was almost equal to that of company B. While…