View the step-by-step solution to:

Question

I will send the excel sheet. I can not post it because it is too big.

This

assignment requires two files to be uploaded. Do not hit submit until you have selected both files.

Chapter 14 of your textbook describes several ratios as well as vertical analysis and horizontal analysis of financial statements. Using the annual report and excel file of financial statements for Carnival Corporation, prepare the following items. Use the spreadsheet provided and modify it with your calculations. Just be sure to change the file name to something with your name in it. You must use spreadsheets for this assignment.

Common Size Balance Sheet

           provide a spreadsheet with common size balance sheets for the years ended November 30, 2017 and 2018. For 2018, each line item should be shown as a percentage of total assets on November 30, 2018. Likewise, for 2017, each item should be shown as a percentage of total assets on November 30, 2017. In your calculations, round each percentage to three digits. For example if cash as a percentage of total assets is .054029834, your answer should be shown as 5.4%. These numbers on the financial statements are rounded to the nearest million, so it is a bit silly to show calculations with more precision than the underlying data.

Common Size Income Statement

           This requires a spreadsheet with common size income statements for the 2018 and 2017 fiscal years. You do not need to do 2016. In this case, your denominator will be Revenues. Again, remember to round.

Horizontal Analysis of both financial statements

           This requires a horizontal analysis of the balance sheet and income statement, showing the percentage change from 2017 to 2018 (the dollar amounts, not the percentages you calculated in the common size statements). This is calculated as follows:

(2018 amount - 2017 amount)/ 2017 amount

Thus, each line item on the balance sheet and income statement should show a percentage increase or decrease. A negative number, or decrease, can be formatted to show in parentheses, which is the preferable notation in accounting circles.

Ratios

Calculate all* of the ratios listed in exhibit 14-26, "Summary of Analytical Measures," for Carnival Corp in 2018 (you do not need to do ratios for 2017).

* Because Carnival inventory sales are a small fraction of their revenues, do not calculate Inventory Turnover, Days Sales in Inventory, or Gross Profit. You also do not need to calculate EPS or Return on Common Stockholders' Equity

In any place where the formula calls for an average, use the 2017 number plus the 2018 number divided by 2.

The listed items should be submitted in an Excel file.

Carnival 10-K data.xlsx.

Finally, a similar ratio analysis will be provided after the first chat for Royal Caribbean Cruise Lines. Compare your results from Carnival with RCL on a separate Word document. Your analysis must address at least three key ratios or trends that are similar and three that are different, as well as what those differences mean. You will notreceive full credit if you discuss dollars instead of ratios, and you must interpret, not just list, your results.

Again, this assignment requires two files to be uploaded. Do not hit submit until you have selected both files.

AMENDMENT!!! In the Carnival file, the income statement is not rounded to millions of dollars, but the balance sheet is. If you didn't realize that, your ratios will be very strange! If you've already done most of the work, and you did not adjust for the millions, you will want to reopen your file and delete the last 6 zeros off every number (except EPS) in the income statement. This will not change any of your vertical analysis or trend analysis. It will, however, make your ratios that use numbers off both statements (like A/R turnover, ROA, ROE, etc) correct.

If you have not gotten very far on the assignment yet, it might be easier to start out with a new file. This one has those zeros deleted so you don't have to do it.

Carnival 10-K data cleaned up.xlsx

I will send the excel sheet. I can not post it because it is too big.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Accounting tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors