Cardinal Health's Financial Analysis

Bus 211Financial Accounting                                   Name ___________________         

Financial Analysis Project                                         Company ____________________                 

Part II Spring 2020 (20 points)

A.  Using the most recent Audited Annual Report (SEC annual filing Form 10-K) locate the financial statements on the web page for your particular company and print out the following statements:

1. Balance Sheet                                          ______
2. Income Statement                                               ______
3. Comprehensive Income statement          ______
4. Statement of Cash Flows                         ______
5. Selected Notes to Financial Statements  _______

(see B6, B7, & B10)

Do not print out the entire Annual Report.  Note that a copy of the solution for this project is posted on iLearn using the Home Depot Annual Report.

B.  For the following questions provide your answer in the space provided and highlight the answer with a florescent highlighter on the Financial Statements, Notes or other printed documents.  Once you have printed the above documents, hand-number each page and use them for the page numbers.   

1.  Did the sales increase or decrease over the past year?                      Pg #__________

State the dollar amount change and % of change from prior year.

1. Did the cost of goods sold increase or decrease over the past year?  Pg #__________

If your company does not have cost of goods sold, use total expenses.  State the dollar amount change and % of change from prior year.

3.  Did the inventory increase or decrease over the past year?               Pg #_________

State the dollar amount change and % of change from prior year.

4 Calculate the Gross Profit (Margin) in dollars and % for all years presented

 in your annual report:                                                                          Pg #_____

Year

            Gross Margin $                       _________      __________    _________

            Gross Margin %          _________      __________    _________

If you have a service company, you will not have a cost of goods sold.  As a result, you will not be able to calculate the Gross Margin.  If so, calculate the Net Income (Profit Margin) as a % of net sales instead of the Gross Margin.

1.  Compute the inventory turnover and average days to sell for the

most recent year.                                                                                    Pg# _____                  

Computations:

1. What inventory valuation does your company use (LIFO, FIFO, etc.)  _____Pg # ___

Print the note relating to inventory and submit with this project.

1. Find the note to the financial statement describing Plant, Property, and Equipment. Pg #____

Print the note detailing the depreciation methods used for financial reporting, tax purposes (if given), and the various useful lives of the assets. 

8.  Using the Statement of Cash Flows, list how much your company paid            Pg # _______

in cash for the purchase of fixed assets (capital assets/expenditures)

for all years presented.

9. List the total $ amount and types of the Intangible Assets recorded in the      Pg # ______

Balance Sheet.  (see balance sheet and notes to the financial statement for details)              

10.  List the different types of long-term debt reported in the balance sheet. In addition to this list, print and submit the notes to the financial statements relating to long-term debt. 

                                                                                                                       Pg #_______

11.   Using the Statement of Cash Flows (financing activities), identify how much your

company borrowed/proceeds and paid/payments in cash relating to long-term debt for all years presented.                                                                                 Pg# ________

12.  Calculate the debt to equity ratio and the times interest earned ratio for your     

company’s most recent year. If the average debt to equity ratio is 1.0 and the times interest earned ratio is 5.1 for your competitor’s, what does your calculation indicate about your company’s risk?

                                                                                                          Pg# _______

Submission Requirement:

1. Submit this completed worksheet


2. Submit the Balance Sheet, Income Statement, Comprehensive Income Statement and Statement of Cash Flows


3. Submit the inventory, plant, property and equipment, and long-term debt notes to the financial statement.