+1-415-670-9189
info@expertsmind.com
Prepare comparative analysis on income statement
Course:- Accounting Basics
Reference No.:- EM13788965




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

1. Apply to actual companies the basic knowledge and analytical techniques learned from our course.

2. Prepare vertical common-size financial statements, horizontal common-size financial statements, and various profitability and risk ratios.

3. Compare the calculated results with competitors and across different years.

4. Summarize the analyses and make investment recommendations.

You will be analyzing the following firms:

a. Fluor Corp.

b. Jacobs Engineering Group Inc.The required tasks are detailed below:

(1) Prepare vertical (as well as horizontal) common-size balance sheets and income statements for both companies. Note: Compute for the most recent THREE years.

(2) Prepare comparative analysis on income statement and balance sheet for both companies. You should compute for the most recent THREE years.

(3) Prepare ratio analyses (for the same THREE year time period) for both companies. At least, you should include the following ratios in your computations: (1) current ratio, (2) acid-test ratio, (3) receivables turnover, (4) inventory turnover, (5) asset turnover, (6) profit margin on sales, (7) rate of return on assets, (8) rate of return on common stock equity, (9) earnings per share, (10) payout ratio, (11) debt to total assets ratio, (12) times interest earned, (13) cash debt coverage ratio, and (14) book value per share.

(4) Comment on the analytical results of the two companies. Your comments should concentrate on the trends across the companies. In addition to contrasting the ratios between the companies, you should interpret the numbers and make suggestions as to why the ratio of one company might be higher/lower than the other.

(5) Write a conclusive summary on the firms you have studied. Based upon your conclusions, recommend the better performing firm for potential investment. Your conclusions should be based upon, and specifically reference, the analyses prepared in this report.

Attachment:- fiscal 2014.zip

Answered:-

Verified Expert


Preview Container content

Introduction

The main objective of this report is to do financial analysis of Fluor Corp (FLC) and Jacob Engineering group (JEG) using various financial analysis tools such as vertical and horizontal analysis, ratio analysis, trend analysis etc. These analyses are important to compare the financial dynamics of the two companies so as to suggest and recommend the investors regarding best investment opportunity.

Analysis- FLC & JEG

In this section financial analysis of Fluor Corp (FLC) and Jacob Engineering group (JEG) will be done using various financial analysis tools such as vertical and horizontal analysis, ratio analysis, and trend analysis. The detailed analysis along with comparison is covered in proceeding sections:-




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
1. Journalize the entry to record the payroll for the week of December 10. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
If the president is right, what will be the effect on the company's monthly net operating income or loss? Using the incremental approach in perparing the answer?
Using the information in PA7-1, calculate the cost of goods sold and ending inventory for Glad-stone Company assuming it applies the LIFO cost method perpetually at the time o
Which of the following is usually included in the articles of incorporation. Which of the following is a type of damage award that may be granted by a court as a remedy for br
Complete the two final columns shown beside each item in Pinnacle Plus comparative financial statements. Round the percentages to one decimal place. Which account increased by
Effectiveness of communication - i.e.readability, legibility, grammar, spelling, neatness, completeness and presentation will be a minimum threshold requirement for all writte
Assume that Schellhamer Company decides to estimate its bad debts expense based on 3% of accounts receivable. What amount of bad debts expense will the company record if All
During an entity's lifetime, accountants produce financial statements at arbitrary moments in time in accordance with which basic accounting concept?