Financial Statement Project

Hello I would like you to write a report of 3 parts each one is separate from the other one.Details:The professor thinks that your level of analysis over the past few weeks has progressed to the degree that you are ready to take on a second industry (Company), consumer appliance, home office, and electronics retailer (Best Buy Co., Inc.). Included in Case 1 is the Best Buy 2018 Annual Report. Your analysis for Case 1 is based on the completion of the sections below. Your written analysis must be typed and should be at minimum 4 to 5 pages (10 font, single-spaced) in length, plus the inclusion of attachments. In order to obtain complete or partial credit on the sections below, you need to show all calculations (not just a final answer). Where applicable, you should state your assumptions. All analysis must be your own original work and must be submitted to your instructor by the assigned due date.I. Assessment of Financial DistressA. Calculate the Altman Z-score for 2018 and 2017. Note: Refer to Yaho Finance for stock prices. You must show all formulas and calculations.B. Comment on the significance of the Altman Z-scores calculated above. II. Analysis of Historical Operating Performance (GAAP Basis)A.Perform a year-to-year trend analysis by computing the percentage change and dollar change between fiscal 2018 and fiscal 2017 for the following income statement items (use 2 decimal places to the right, i.e. 33.45%):-Revenues-Gross Profit-Operating Income-EBIT-Interest Expense-Net Income -EBITDA B.Calculate the following profitability ratios for fiscal 2018 and fiscal 2017 (using 2 decimal places): -Gross Margin-Operating Margin-EBIT Margin-Interest Coverage -Net Margin-EBITDA MarginC.Discuss in detail the change in Best Buy’s financial performance between fiscal 2018 and fiscal 2017 by discussing some of the information derived in part A and B (key variances and margins) and your review of the Management Discussion and Analysis and Footnotes in the annual report. Your discussion should include comments pertaining to changes in operating performance of the major business segments. Note: The analysis should be comprehensive and must be your own original thoughts. (Page- page and half)III. Financial Position (GAAP Basis) and ROE (DuPont) AnalysisA.1. Calculate Best Buy’s Return on Equity (ROE) for 2018 and 2017 using the 3-step DuPont model (assume total assets of $13,519 million and shareholders’ equity of $4,378 million at 2016 fiscal year-end) Note: Show all formulas and calculations.2. Discuss which factors (profitability, activity, solvency) are primarily driving the change in ROE between fiscal 2018 and 2017.B. Comment on Best Buy’s liquidity position, as of February 3, 2018. Use liquidity ratios, available lines of credit, and the Company’s access to the capital markets in your discussion. (one page)C. 1. Comment on Best Buy’s capital structure as of February 3, 2018 As part of your discussion, compare (calculate) the Company’s Total Debt-to-Total Capital ratio and Total Debt/EBITDA ratio for fiscal year-end 2018 and year-end 2017.2. Calculate Best Buy’s enterprise value at February 3, 2018. Assume the Company’s debt is valued at 96 and its common stock price per share was $71.24. Discuss the significance of Best Buy’s enterprise value as part of your capital structure analysis. Note: Reduce the total shares issued by the number of common stock shares held in Treasury to determine common shares outstanding. D. 1. Calculate the average total life span of Best Buy’s property, plant and equipment at fiscal year-end 20182. Calculate Best Buy’s average age of property, plant and equipment at fiscal year-end 2018.3. Comment on the outcome (meaning) of the ratios calculated above.
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