ACCT6200 ABAC Dynamics & Lockheed Martin Financial Statements Analysis Specific instructions have been attached. I need help preparing the balance sheet, i

ACCT6200 ABAC Dynamics & Lockheed Martin Financial Statements Analysis Specific instructions have been attached. I need help preparing the balance sheet, income statement, statement of cash flows, and statement of retained earnings. I also must complete the ratios: Return on Assets, disaggregate ROA into the components of profitability and productivity, Return on Equity, Profit margin, Asset turnover. I have attached an excel file with an example of a recommended format of how the financial statements should be setup (this can be modified based on companies if needed). 2018
Assets
Cash
Noncash assets
Total assets
Liabilities and equity
Current liabilities
Total liabilities
Equity
Contributed capital
Retained earnings
Other shareholder’s equity
Total equity
Liabilities and equity
General Dynamics
2017
Lockheed Martin
2016
2018
2017
BALANCE SHEET (in millions)
2016
$
– $
– $
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$
– $
– $
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$
– $
– $
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$
– $
– $
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–
– $
– $
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– $
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STATEMENT OF CASH FLOWS (in millions)
Operating cash flows
Investing cash flows
Financing cash flows
Foreign currency effect
Net change in cash
Cash balance, end of period, previous
year
Cash balance, end of period, current year $
–
–
–
– $
– $
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$
INCOME STATEMENT (in millions)
Net Sales
Total revenues
Cost of sales
Operating expenses
Total expenses
Net income
$
– $
– $
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$
– $
STATEMENT OF RETAINED EARNINGS in millions
Contributed capital, previous year
Stock issue & other
Contributed capital, current year
Retained earnings, previous year
Net income
Less: dividends
Other adjustments
Retained earnings, current year
$
– $
– $
–
$
– $
– $
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$
– $
– $
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$
– $
– $
–
$
– $
– $
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$
– $
– $
–
Other shareholders’ equity, previous year
Other changes in equity
Other shareholders’ equity, current year
ACCT 6200 – Managerial Control
HW #2A – Group Financial Statement Analysis Project
Your group will analyze the financial statements of General Dynamics and Lockheed Martin.
Format requirements (Excel):
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Format the excel files to print out properly (consider pagination and the presentation).
Always utilize Excel’s formulas. Do not merely type the info into Excel.
The Excel files should look professional and should be functional.
The comparative F/S column headings should be as follows. For instance: Coke 2014,
2013, 2012 then Pepsi 2014, 2013, 2012.
Account titles should be left aligned.
Dollar amounts should be in this format 99,999 except for the first number in each
column and the totals, which should be in this format $99,999.
Use the format box to draw underlines and double underlines (not the underline function).
Use underlines before any sum or calculation in the F/S. For instance, before gross profit
or net income, etc.
Use double underlines only for the grand totals (i.e., net income, total assets and total
liabilities and equity. Note, that you do not need a double underline for total liabilities,
only for the grand total of total liabilities and equity.
Calculate the % change correctly. Take the difference and divide by the beginning
number. If my salary increases from $25,000 to $30,000, that is a 20% increase
(difference of $5,000 divided by $25,000).
Indicate whether the statements are in millions or thousands and make sure all companies
are the same (both millions or both thousands).
Both negative numbers and negative ratios should use parentheses rather than minus
signs. Also use () for ratios. Should be (2.63%) rather than -2.63%.
Chapter 4 should be very helpful in your analysis. Include annotated tables such as:
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Liquidity and Solvency Analysis (see Appendix 4B)
Vertical and Horizontal Analysis (see Appendix 4B)
DuPont Disaggregation Analysis (see Appendix 4C)
Reports that meet expectations in these two dimensions will receive grades in the B range.
Reports that exceed expectations (and stand out from the rest) will receive grades in the A range.
Reports that do not meet expectation will receive a grade lower than a B.
Suggestions:
Overall
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Make sure you tell me whether your statements are in millions or thousands and make
sure both companies are the same (both millions or both thousands).
Both negative numbers and negative ratios should use parentheses rather than minus
signs. Most of you did not use () for ratios. Should be (2.63%) rather than -2.63%.
Ratios
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Make sure that you use a % sign for ratios that are supposed to have a % sign (i.e., ROA
and ROE) and that you don’t use a % sign for ratios that so not have % signs (i.e., debt to
equity and asset turnover)
Make sure you give me two decimal places for ratios (i.e., 1.34 for those without % signs
or 3.05% for those ratios with % signs)
Make sure you format percentages properly. Here is an example… 5,340 / 102,340 =
5.21%. Some of you had this as .05 or 5.21 or 521.79%.
Put the ratio comparisons side-by-side for the two companies.
Show several years of ratios so that you can comment on trends.
Statements
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Still a few problems with underlines. Basically, you need an underline before any sum or
calculation in the F/S. For instance, before you get gross profit or net income, etc.
You only need double underlines for the grand totals (i.e., net income, total assets and
total liabilities and equity. Note, that you do not need a double underline for total
liabilities, only for the grand total of total liabilities and equity.
Please put your companies side-by-side to aid in the comparison of their results. Make
sure the balance sheet is side-by-side also. To accomplish the side-by-side comparison
you will need to have the liabilities and equity section under the assets section on the B/S,
not beside it. Let me know if this is not clear.
Milestones
Choose industry and companies. Post your group’s industry and
companies on the discussion set up in GeorgiaVIEW for that
purpose. Only one group per industry (first come, first served). I
will approve each one.
Post your links to each company’s annual report and financial
statements to the GeorgiaVIEW discussion group.
Submit tables (in Excel) of ratios, vertical and horizontal analysis,
and DuPont Disaggregation Analysis for each company. Your data
should include at least three years of B/S, I/S, and SCF data.
Simplify and standardize F/S to make comparisons easier (reformat
and group accounts). This submission should be in Excel to allow
better analysis. See format requirements above.
Total
HW #2A
This counts 7 %
of your final grade
in this class
General Dynamics
https://investorrelations.gd.com/financial-reports/annual-reports-archive/default.aspx
Lockheed Martin:
https://www.lockheedmartin.com/en-us/news/annual-reports.html

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