ACCT 370 LU UnitedHealth Group Excel Project

ACCT 370EXCEL PROJECT: PROJECTING FINANCIAL STATEMENTS ASSIGNMENT
INSTRUCTIONS
OVERVIEW
Common Sized Balance Sheets (Tabs 12), Common Sized Income Statements (Tab 13),
Horizontal Analysis Balance Sheets (Tab 14), Horizontal Analysis Income Statements (Tab 15),
and Projected Financial Statements (Tabs 16-18)
INSTRUCTIONS
Continue in the same Excel workbook prepared in Module 4: Week 4, adding the following
tabs:
o The 12th tab in your Financial Statement Analysis Template must be labeled
Common Sized Balance Sheets.
▪ Set-up like the Historical Balance Sheets (Tab 3), this worksheet should use
formulas to calculate the common sized percentages, linking to the Historical
Balance Sheets for the calculations. “Total Assets” should be used as the base
for all common sized calculations on the Balance Sheets. Common sized
percentages should be calculated for all three historical years presented.
▪ See Exhibit A for a partial example of this tab.
o The 13th tab in your Financial Statement Analysis Template must be labeled
Common Sized Income Statements.
▪ Set-up like the Historical Income Statements (Tab 2), this worksheet should use
formulas to calculate the common sized percentages, linking to the Historical
Income Statements for the calculations. “Revenue” or “Total Revenue”
(depending on your company) should be used as the base for all common sized
calculations on the Income Statements. Common sized percentages should be
calculated for all three historical years presented.
o The 14th tab in your Financial Statement Analysis Template must be labeled
Horizontal Analysis of Balance Sheets.
▪ Start by copying and pasting the Historical Balance Sheets from Tab 3 to this
worksheet. Then, add dollar and percentage change columns between each of
the set of historical years.
▪ See Exhibit B for an example of this tab.
o The 15th tab in your Financial Statement Analysis Template must be labeled
Horizontal Analysis of Income Statements.
▪ Start by copying and pasting the Historical Income Statements from Tab 2 to
this worksheet. Then, add dollar and percentage change columns between each
of the set of historical years.
o The 16th tab in your Financial Statement Analysis Template must be labeled
Projected Income Statements. Three years of projected statements should be
included, starting with the most recent year after the company’s last issued report.
o The 17th tab in your Financial Statement Analysis Template must be labeled
Projected Balance Sheets. Three years of projected statements should be
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included. Three years of projected statements should be included, starting with
the most recent year after the company’s last issued report.
o The 18th tab in your Financial Statement Analysis Template must be labeled
Projected Statement of Cash Flows. Three years of projected statements should
be included, starting with the most recent year after the company’s last issued
report.
▪ Other information relating to projected tabs:
▪ Projections should be based on research performed on your company
and its industry. Use historical, trend, ratio data and current and future
economic projections as well as information from the company’s
MD&A to aid in preparing projections.
▪ Clearly state your assumptions in a text box at the bottom of each tab.
Cite sources for assumptions based on research.
▪ The statements should be consistent, reasonable, and accurate. Areas
that will be checked for accuracy include:
• The Balance Sheets should balance for all years presented.
• Retained earnings should be properly calculated using the prior
year’s balance, net income, and dividends.
• The Ending Cash Balance on the Statement of Cash Flows
should agree to the Cash Balance shown on the Balance Sheet
for the same year.
• Net Income on the Income Statements should match what is
reported on the top of the Statement of Cash Flows (if indirect
method is used).
o Other instructions:
▪ The Excel workbook should be professionally formatted. Professional
formatting includes:
• All numbers are formatted similarly. The use of decimals, commas
for thousands, and other formatting is consistent.
• Dollar signs are included in the first and last numbers of each
column.
• Subtotals and totals are preceded by a single underline. Totals are
followed by a double underline.
• Line descriptions are indented/bolded in a manner that makes the
spreadsheet easy to read.
▪ All common sized, horizontal analysis, and projection items should be
calculated using formulas. Totals and subtotals should also be calculated
using formulas. For an example of which cells may need formulas, please
see Exhibits A & B.
Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.
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EXHIBIT A: EXAMPLE COMMON SIZED BALANCE SHEETS (TAB 12, PARTIAL
VIEW)
(IMPORTANT NOTE: ONLY PARTIAL BALANCE SHEET SHOWN. YOUR BALANCE SHEET SHOULD
INCLUDE LIABILITIES AND STOCKHOLDERS’ EQUITY AS WELL.)
EXHIBIT B: EXAMPLE HORIZONTAL ANALYSIS OF BALANCE SHEETS (TAB 14,
PARTIAL VIEW)
(IMPORTANT NOTE: ONLY PARTIAL BALANCE SHEET SHOWN. YOUR BALANCE SHEET SHOULD
INCLUDE LIABILITIES AND STOCKHOLDERS’ EQUITY AS WELL.)
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