The Company is Amazon.com, Inc. 5. Stock Price Spreadsheet and Comments (30 Poin
ID: 2481211 • Letter: T
Question
The Company is Amazon.com, Inc.
5. Stock Price Spreadsheet and Comments (30 Points):
(a) Include an Excel graph of the stock performance over time for at least two months.
(b) The graph must be the output of a spreadsheet program and must include dates on the horizontal axis and the stock's price performance on the vertical axis. Stock performance should include the daily, high, low and closing price. (c) How did the stock perform? It must be in an Excel spreadsheet that you developed. The data in your spreadsheet can be from a database taken from the internet but you must get it into your spreadsheet and then produce the stock price graph from your spreadsheet data. Please note that every graph, figure, or table should have a number and title and be referred to in the text of the report.
Current stock information can be seen here:
http://finance.yahoo.com/q?s=AMZN
6. Company Financial Analysis (30 Points):
(a) Show the Balance Sheet and Profit and Loss or Income Statement for the company for the most recent year or two that data is available. (b) Calculate ratios discussed on the Financial Analysis Handout and in Appendix B of the course textbook (Basics of Engineering Economy 2nd edition). (c) Comment on the results achieved.
Financial analysis handout (example)
Ratio
Formula
Manhan Corp. 15
I Liquidity Ratios
1. Current Ratio
Current Assets / Current Liabilities
71,900 / 28,000 = 2.57
2. Quick or acid test
Current Assets-inventory / Current Liabilities
42,500 / 28,000 = 1.52
II Leverage Ratios
3. Debt to total assets
Total liabilities / Total Assets
58,000 / 160,400 = 0.36
4. Times interest earned
Gross operating income* / Interest charges*
63,000 / 5,200 = 12.12
III Activity Ratios
5. Inventory turnover
Net sales* / Inventory
300,000 / 29,400 = 10.20
6. Fixed assets turnover
Net sales* / Fixed assets
300,000 / 80,000 = 3.75
7. Total assets turnover
Net sales* / Total assets
300,000 / 160,400 = 1.87
8. Average collection period
Receivables / Sales per day*
23,700 / 822 = 28.8
IV Profitability Ratios
9. Return on Total Assets
Net income after taxes* / Total assets
19,656 / 160,400 = 12.3%
10. Profit margin on sales
Net income after taxes* / Net Sales*
19,656 / 300,000 = 6.6%
11. Return on Net Worth or Return on Equity
Net income after taxes* / Net Worth
19,656 / 102,400 = 19.2%
Ratio
Formula
Manhan Corp. 15
I Liquidity Ratios
1. Current Ratio
Current Assets / Current Liabilities
71,900 / 28,000 = 2.57
2. Quick or acid test
Current Assets-inventory / Current Liabilities
42,500 / 28,000 = 1.52
II Leverage Ratios
3. Debt to total assets
Total liabilities / Total Assets
58,000 / 160,400 = 0.36
4. Times interest earned
Gross operating income* / Interest charges*
63,000 / 5,200 = 12.12
III Activity Ratios
5. Inventory turnover
Net sales* / Inventory
300,000 / 29,400 = 10.20
6. Fixed assets turnover
Net sales* / Fixed assets
300,000 / 80,000 = 3.75
7. Total assets turnover
Net sales* / Total assets
300,000 / 160,400 = 1.87
8. Average collection period
Receivables / Sales per day*
23,700 / 822 = 28.8
Explanation / Answer
6. Balance sheet and Profit and Loss account or Income statement of the company
Balance sheet of the company
Income statement
Particulars Amount ($)
Sales 300,000
Less: operating expenses 237,000
Operating Income 63,000
Liabilities Amount($) Assets Amount ($) Capital 102,400 Fixed Assets 80,000 Other fixed assets 8,500 Long term liabilities 30,000 Current assets Current liabilities 28,000 Inventory 29,400 Debtors 23,700 Other current assets 18,800 Total 160,400 Total 160,400Related Questions
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