Using the balance sheet and income statement, complete the ratios on the tab labeled "Ratios" 3. Answer the final OBSERVATION QUESTION (listed under Ratios calculations) Consolidated Balance Sheets (USD $) 12/31/2020 Vertical Analysis 12/31/2019 Vertical Analysis Horizontal Analysis In Millions, unless otherwise specified Current Assets: Cash and Cash Equivalents $1,723 $1,929 Receivables, net 1,484 1,398 Merchandise Inventories 11,079 11,057 Other Current Assets 1,016 895 Total Current Assets 15,302 15,279 Property and Equipment, at cost 38,513 39,064 Less Accumulated Depreciation and Amortization 15,793 15,716 Net Property and Equipment 22,720 23,348 Goodwill 1,353 1,289 Other Assets 571 602 Total Assets 39,946 40,518 Current Liabilities: Short-Term Debt 290 0 Accounts Payable 5,807 5,797 Accrued Salaries and Related Expenses 1,391 1,428 Sales Taxes Payable 434 396 Deferred Revenue 1,468 1,337 Income Taxes Payable 35 12 Current Installments of Long-Term Debt 38 33 Other Accrued Expenses 1,806 1,746 Total Current Liabilities 11,269 10,749 Long-Term Debt, excluding current installments 16,869 14,691 Other Long-Term Liabilities 1,844 2,042 Deferred Income Taxes 642 514 Total Liabilities 30,624 27,996 STOCKHOLDERS' EQUITY Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.768 billion shares at February 1, 2015 and 1.761 billion shares at February 2, 2014; outstanding: 1.307 billion shares at February 1, 2015 and 1.380 billion shares at February 2, 2014 88 88 Paid-In Capital 8,885 8,402 Retained Earnings 26,995 23,180 Accumulated Other Comprehensive (Loss) Income -452 46 Treasury Stock, at cost, 461 million shares at February 1, 2015 and 381 million shares at February 2, 2014 -26,194 -19,194 Total Stockholdersâ€™ Equity 9,322 12,522 Total Liabilities and Stockholders' Equity $39,946 $40,518 Consolidated Statements of Earnings (USD $) 12 Months Ended In Millions, except Per Share data, unless otherwise specified 12/31/2020 Vertical Analysis 12/31/2019 Vertical Analysis Horizontal Analysis Income Statement [Abstract] NET SALES $83,176 $78,812 Cost of Sales 54,222 51,422 GROSS PROFIT 28,954 27,390 Operating Expenses: Selling, General and Administrative 16,834 16,597 Depreciation and Amortization 1,651 1,627 Total Operating Expenses 18,485 18,224 OPERATING INCOME 10,469 9,166 Interest and Other (Income) Expense: Interest and Investment Income -337 -12 Interest Expense 830 711 Other 0 0 Interest and Other, net 493 699 EARNINGS BEFORE PROVISION FOR INCOME TAXES 9,976 8,467 Provision for Income Taxes 3,631 3,082 NET EARNINGS $6,345 $5,385 Weighted Average Common Shares 1,338 1,425 BASIC EARNINGS PER SHARE $4.74 $3.78 Ratio Analysis 2020 Ratios Current Ratio Inventory Turnover Ratio Debto to Equity Ratio Return on Assets Asset Turnover Ratio Profit Margin Ratio Gross Profit Ratio

Using the balance sheet and income statement, complete the ratios on the tab labeled "Ratios" 3. Answer the final OBSERVATION QUESTION (listed under Ratios calculations) Consolidated Balance Sheets (USD $) 12/31/2020 Vertical Analysis 12/31/2019 Vertical Analysis Horizontal Analysis In Millions, unless otherwise specified Current Assets: Cash and Cash Equivalents $1,723 $1,929 Receivables, net 1,484 1,398 Merchandise Inventories 11,079 11,057 Other Current Assets 1,016 895 Total Current Assets 15,302 15,279 Property and Equipment, at cost 38,513 39,064 Less Accumulated Depreciation and Amortization 15,793 15,716 Net Property and Equipment 22,720 23,348 Goodwill 1,353 1,289 Other Assets 571 602 Total Assets 39,946 40,518 Current Liabilities: Short-Term Debt 290 0 Accounts Payable 5,807 5,797 Accrued Salaries and Related Expenses 1,391 1,428 Sales Taxes Payable 434 396 Deferred Revenue 1,468 1,337 Income Taxes Payable 35 12 Current Installments of Long-Term Debt 38 33 Other Accrued Expenses 1,806 1,746 Total Current Liabilities 11,269 10,749 Long-Term Debt, excluding current installments 16,869 14,691 Other Long-Term Liabilities 1,844 2,042 Deferred Income Taxes 642 514 Total Liabilities 30,624 27,996 STOCKHOLDERS' EQUITY Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.768 billion shares at February 1, 2015 and 1.761 billion shares at February 2, 2014; outstanding: 1.307 billion shares at February 1, 2015 and 1.380 billion shares at February 2, 2014 88 88 Paid-In Capital 8,885 8,402 Retained Earnings 26,995 23,180 Accumulated Other Comprehensive (Loss) Income -452 46 Treasury Stock, at cost, 461 million shares at February 1, 2015 and 381 million shares at February 2, 2014 -26,194 -19,194 Total Stockholdersâ€™ Equity 9,322 12,522 Total Liabilities and Stockholders' Equity $39,946 $40,518 Consolidated Statements of Earnings (USD $) 12 Months Ended In Millions, except Per Share data, unless otherwise specified 12/31/2020 Vertical Analysis 12/31/2019 Vertical Analysis Horizontal Analysis Income Statement [Abstract] NET SALES $83,176 $78,812 Cost of Sales 54,222 51,422 GROSS PROFIT 28,954 27,390 Operating Expenses: Selling, General and Administrative 16,834 16,597 Depreciation and Amortization 1,651 1,627 Total Operating Expenses 18,485 18,224 OPERATING INCOME 10,469 9,166 Interest and Other (Income) Expense: Interest and Investment Income -337 -12 Interest Expense 830 711 Other 0 0 Interest and Other, net 493 699 EARNINGS BEFORE PROVISION FOR INCOME TAXES 9,976 8,467 Provision for Income Taxes 3,631 3,082 NET EARNINGS $6,345 $5,385 Weighted Average Common Shares 1,338 1,425 BASIC EARNINGS PER SHARE $4.74 $3.78 Ratio Analysis 2020 Ratios Current Ratio Inventory Turnover Ratio Debto to Equity Ratio Return on Assets Asset Turnover Ratio Profit Margin Ratio Gross Profit Ratio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please Complete the Following:

1. Complete a vertical and horizontal analysis on the tabs labeled "Balance Sheet" and "Income Statement", use total assets on the balance sheet and net sales on the income statement for your vertical analysis.

2. Using the balance sheet and income statement, complete the ratios on the tab labeled "Ratios"

3. Answer the final OBSERVATION QUESTION (listed under Ratios calculations)

Consolidated Balance Sheets (USD $)	12/31/2020	Vertical Analysis	12/31/2019	Vertical Analysis	Horizontal Analysis
In Millions, unless otherwise specified
Current Assets:
Cash and Cash Equivalents	$1,723		$1,929
Receivables, net	1,484		1,398
Merchandise Inventories	11,079		11,057
Other Current Assets	1,016		895
Total Current Assets	15,302		15,279
Property and Equipment, at cost	38,513		39,064
Less Accumulated Depreciation and Amortization	15,793		15,716
Net Property and Equipment	22,720		23,348
Goodwill	1,353		1,289
Other Assets	571		602
Total Assets	39,946		40,518
Current Liabilities:
Short-Term Debt	290		0
Accounts Payable	5,807		5,797
Accrued Salaries and Related Expenses	1,391		1,428
Sales Taxes Payable	434		396
Deferred Revenue	1,468		1,337
Income Taxes Payable	35		12
Current Installments of Long-Term Debt	38		33
Other Accrued Expenses	1,806		1,746
Total Current Liabilities	11,269		10,749
Long-Term Debt, excluding current installments	16,869		14,691
Other Long-Term Liabilities	1,844		2,042
Deferred Income Taxes	642		514
Total Liabilities	30,624		27,996

STOCKHOLDERS' EQUITY
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.768 billion shares at February 1, 2015 and 1.761 billion shares at February 2, 2014; outstanding: 1.307 billion shares at February 1, 2015 and 1.380 billion shares at February 2, 2014	88		88
Paid-In Capital	8,885		8,402
Retained Earnings	26,995		23,180
Accumulated Other Comprehensive (Loss) Income	-452		46
Treasury Stock, at cost, 461 million shares at February 1, 2015 and 381 million shares at February 2, 2014	-26,194		-19,194
Total Stockholdersâ€™ Equity	9,322		12,522
Total Liabilities and Stockholders' Equity	$39,946		$40,518

Consolidated Statements of Earnings (USD $)	12 Months Ended
In Millions, except Per Share data, unless otherwise specified	12/31/2020	Vertical Analysis	12/31/2019	Vertical Analysis	Horizontal Analysis
Income Statement [Abstract]
NET SALES	$83,176		$78,812
Cost of Sales	54,222		51,422
GROSS PROFIT	28,954		27,390
Operating Expenses:
Selling, General and Administrative	16,834		16,597
Depreciation and Amortization	1,651		1,627
Total Operating Expenses	18,485		18,224
OPERATING INCOME	10,469		9,166
Interest and Other (Income) Expense:
Interest and Investment Income	-337		-12
Interest Expense	830		711
Other	0		0
Interest and Other, net	493		699
EARNINGS BEFORE PROVISION FOR INCOME TAXES	9,976		8,467
Provision for Income Taxes	3,631		3,082
NET EARNINGS	$6,345		$5,385
Weighted Average Common Shares	1,338		1,425
BASIC EARNINGS PER SHARE	$4.74		$3.78

Ratio Analysis		2020 Ratios
Current Ratio
Inventory Turnover Ratio
Debto to Equity Ratio
Return on Assets
Asset Turnover Ratio
Profit Margin Ratio
Gross Profit Ratio


OVERALL:
How do you this company performed when comparing 2020 to 2019? (state at least 4 observations)
1

2

3

4

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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