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

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EXCEL PROJECT: PROJECTING FINANCIAL STATEMENTS ASSIGNMENT

INSTRUCTIONS

OVERVIEW

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)

INSTRUCTIONS

Continue in the same Excel workbook prepared in Module 4: Week 4, adding the following

tabs:

o 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.

o 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.

o 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.

o 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.

o 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.

o The 17th tab in your Financial Statement Analysis Template must be labeled

Projected Balance Sheets. Three years of projected statements should be

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included. Three years of projected statements should be included, starting with

the most recent year after the company’s last issued report.

o 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 current 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).

o 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/bolded 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.

Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.

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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.)

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