In your first assignment this week you retrieved the financial information for your chosen company. Analysts must evaluate a company’s financial statements to understand its performance over time. Common size statements “allow analysts to compare the relative composition of the company’s accounts over time” (Hickman et al., 2013, Section 11.3, para. 5). For this assignment, you will take the formatted financial statements you retrieved using Mergent and construct common size income statements and common size balance sheets for your chosen company. The video below explains how to construct a common size income statement and balance sheet using Excel.
Title this assignment “Appendix B.” Be sure to save both formats (Excel and PDF) of these files for later use.
Prior to beginning work on this assignment,
Construct Appendix B:
Using the formatted income statement and balance sheet in Excel from Week 1 – Assignment 1, and following the instructions in the BUS401| Creating Common Size Financial Statements in Excel (Links to an external site.) video,
The Common Size Financial Statements: Appendix B PDF file must contain the formatted common size income statement and balance sheet.
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