ECON 301 (DATA ANALYSIS) MINI PROJECT 3 (FINANCIAL STATEMENT ANALYSIS) File saved as: G:\PD - 2019-05-28\I-Docs\Academic\SDSU\Economics\Econ 301 (Data Analysis)\Mini Projects\Econ 301 - Mini Project 3 - Financial Statement Analysis (Excel).doc Assignment Objective: Perform horizontal and vertical financial statement analysis in Excel. Perform Ratio Analysis in Excel Data Source: Income Statement and Balance Sheet. Individual/Group: Individual assignment using the financial statements from individual project. Assignment Deadline: Tuesday, March 03, 2020 Method of Submission: 1. Print out hard copies of Excel spreadsheets. 2. E-Mail Excel spreadsheets used to perform analysis. Assignment Specifics: 1. Download your company’s financial statements from Mergent in Excel format. 2. Be sure to perform your analysis on: A. Three years of Year-End Income Statements B. Three years of Year End Balance Sheets 3. Copy original spreadsheets onto another worksheet in the workbook to begin your analysis. 4. Make two more copies (one for horizontal analysis, the other for vertical analysis). 5. Perform horizontal analysis on one of the spreadsheets. 6. Perform vertical analysis on the other spreadsheet. 7. Perform ratio analysis in another spreadsheet. Factors to consider when performing assignment: 1. How is the company grouping the income, expense and balance sheet items? 2. What jumps out at you from anything on the financial statements. (Unusual items deserve more investigation.) 3. How much tax does the company report paying? (Companies that pay tax are profitable, companies that do not pay tax may not profitable.) 4. Are there any “extraordinary items” (good or bad) that are not likely to show up in the future? IMAGE 1: Arch of Titus. Rome. c. 81 CE (restored 1822-24). Concrete and white marble, height 15 m. IMAGE 2: Temple of Hera I, Poseidonia (Roman Paestum). Southern Italy, c. 550-540 BCE. PROJECT NOTESType of AnalysisFinancial StatementDescriptionHorizontalIncome StatementWhen performing horizontal financial statement analysis on theincome statement, all income statement items are expressedin terms of their corresponding revenue or expense category inthe base year.Horizontal income statement analysis allows a user to see howwell a company is doing in terms of revenues, expenses andprofits over time.The base year for the series is the oldest year, and the changein each revenue, expense and profit line in subsequent years isexpressed as a percentage change from the previous year.Ideally, a company would be able to grow its revenue at afaster rate than its expenses. If this is the case, then thatcompany's profits would increase over time. If a company'sexpenses are increasing faster than its reven ...