In this assignment you will have the opportunity to demonstrate your ability to Forecast financial information for decision-making needs Use Excel to create and format interactive reports. The Home Depot is a leading specialty retailer of hardware and home improvement products and is the second-largest retail store chain in the United States. It operates large warehouse-style stores. In 2014 and 2015, Home Depot invested in five new stores. The following table provides summary hypothetical data for Home Depot. 2014 2015 Number of stores (total) 2,269 2,274 Sales revenues *$83,176 *$88,519 Inventory *$11,079 *$11,809 Capital Expenditures, net *$1,442 *$1,503 * in millions Instructions Using the information above, create a report in Excel for 2015 and 2016 showing the company’s: Number of stores (Average for the year) Sales revenues Inventory Capital expenditures (net) for the year For simplicity, assume that in 2016, Home Depot’s sales revenues will grow, but only because it will open new stores. At this time, Home Depot is not sure how many stores it will open in 2016, so you are tasked with creating a spreadsheet that will automatically update based on the input provided. For example, if one enters that 10 new stores will be opened in 2016, the 2016 column should update with the new correct information. If 20 stores are entered, then the 2016 column should update with these new calculations. Assume that each new store that is opened will only be open for business for an average of one-half of the year.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
In this assignment you will have the opportunity to demonstrate your ability to
Forecast financial information for decision-making needs- Use Excel to create and format interactive reports.
The Home Depot is a leading specialty retailer of hardware and home improvement products and is the second-largest retail store chain in the United States. It operates large warehouse-style stores. In 2014 and 2015, Home Depot invested in five new stores. The following table provides summary hypothetical data for Home Depot.
|
2014 |
2015 |
|
|
Number of stores (total) |
2,269 |
2,274 |
|
Sales revenues |
*$83,176 |
*$88,519 |
|
Inventory |
*$11,079 |
*$11,809 |
|
Capital Expenditures, net |
*$1,442 |
*$1,503 |
* in millions
Instructions
Using the information above, create a report in Excel for 2015 and 2016 showing the company’s:
- Number of stores (Average for the year)
- Sales revenues
- Inventory
- Capital expenditures (net) for the year
For simplicity, assume that in 2016, Home Depot’s sales revenues will grow, but only because it will open new stores. At this time, Home Depot is not sure how many stores it will open in 2016, so you are tasked with creating a spreadsheet that will automatically update based on the input provided. For example, if one enters that 10 new stores will be opened in 2016, the 2016 column should update with the new correct information. If 20 stores are entered, then the 2016 column should update with these new calculations. Assume that each new store that is opened will only be open for business for an average of one-half of the year.
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