DeVry Chicago ACCT 504 Financial Statement Analysis ProjectA – Comparative Analysis of Oracle

Your Course ProjectFinancial Statement Analysis ProjectA Comparative Analysis of OracleCorporation and Microsoft CorporationHere is the link for the financial statements for Oracle Corporation for the fiscal year ending 2011. First,select 2011 using the drop-down arrow labeled Year on the right-hand side of the page, and then selectAnnual Reports using the drop-down arrow labeled Filing Type on the left-hand side of the page.You should select the 10k dated 6/28/2011 and choose to download in PDF, Word, or Excel format.http://www.oracle.com/us/corporate/investor-relations/sec/index.htmlHere is the link for the financial statements for Microsoft Corporation for the fiscal year ending 2011. Youneed to press the word Go on the left-hand side of the page. Then you should select the 10k dated7/28/2011 and choose to download in Word or Excel format.http://www.microsoft.com/investor/SEC/default.aspx?year=2011&filing=annualA sample project template is available for download in Doc Sharing. The sample project compares theratio performance of Tootsie Roll and Hershey using the 2012 financial statements of Tootsie Roll andHershey provided at their websites.DescriptionThis course contains a Course Project. You will be required to submit one draft of the project at the end ofWeek 5 and the final, completed project at the end of Week 7. Using the financial statements for OracleCorporation and Microsoft Corporation, respectively, you will calculate and compare the financial ratioslisted further down this document for the fiscal year ending 2011 and prepare your comments about thetwo companies performance based on your ratio calculations. The entire project will be graded by theinstructor at the end of the final submission in Week 7, and one grade will be assigned for the entireproject.Overall RequirementsFor the Final SubmissionYour final Excel workbook submission should contain the following items. You cannot use any softwarebut Excel to complete this project.1. A completed worksheet title page tab, which is really a coversheet with your name, the course,the date, your instructors name, and the title for the project.2. A completed worksheet profiles tab that contains a one-paragraph description regarding eachcompany with information about their histories, what products they sell, where they are located,and so on.3. All 18 ratios for each company, with the supporting calculations and commentary on yourworksheet ratio tab. Supporting calculations must be shown either as a formula or as text typedinto a different cell. The ratios are listed further down this document. Your comments for eachratio should include more than just a definition of the ratio. You should focus on interpreting eachratio number for each company and support your comments with the numbers found in the ratios.4. The Summary and Conclusions worksheet tab is an overall comparison of how each companycompares in terms of the major category of ratios described in Chapter 13 of your textbook. Anice way to conclude is to state which company you think is the better investment and why.5. The Bibliography worksheet tab must contain at least your textbook as a reference. Any otherinformation you use to profile the companies should also be cited as a reference.Required Ratios for Final Project Submission1.2.3.4.5.6.7.8.9.10.11.12.13.Earnings per Share of Common StockCurrent RatioGross Profit MarginRate of Return on Sales (Net Profit Margin)Inventory TurnoverDays Inventory Outstanding (DIO)Accounts Receivable TurnoverDays Sales Outstanding (DSO)Asset TurnoverRate of Return on Total Assets (ROA)Debt RatioTimes Interest Earned RatioDividend Yield (For the purposes of this ratio, use Yahoo Finance to look up currentdividend yield and stock price; just note the date that you looked up this information.)14. Rate of Return on Common Stockholders Equity (ROE)15. Free Cash Flow16. Price/Earnings Ratio (Multiple) (For the purpose of this ratio, for Oracle, use the market priceper share on May 30, 2011 and for Microsoft, use the market price per share on June 30,2011.)The Excel files uploaded in the Dropboxes should not include any unnecessary numbers orinformation (such as previous years’ ratios, ratios that were not specifically asked for in theproject, etc.).Please upload your final submission to the Week 7 Dropbox by the Sunday ending Week 7.For the DraftCreate an Excel spreadsheet or use the project template to show your computations for the first 10 ratioslisted above. The more you can complete regarding the other requirements, the closer you will be tocompletion when Week 7 arrives. Supporting calculations must be shown either as a formula or as texttyped into a different cell. If you plan on creating your own spreadsheet, please follow the format providedin the Tootsie Roll and Hershey template file.Please upload your draft submission to the Week 5 Dropbox by the Sunday at the end of Week 5.Other Helpful informationIf you feel uncomfortable with Excel, you can find many helpful references on Excel by performing aGoogle search.Chapter 13 contains ratio calculations and comparison comments related to Apple and Dell; you will likelyfind this information helpful.BigCharts.com provides historical stock quotes.Either APA or MLA style can be used to complete the references on your Bibliography tab. There is atutorial for APA and MLA style within the Syllabus.Grade InformationThe entire project will be graded by the instructor at the end of the final submission in Week 7,and one grade will be assigned for the entire project. The project will count for 18% of your overallcourse grade.CategoryPoints%DescriptionDocumentationand Formatting95%The report will be submitted in the form of anExcel Workbook, with each page (worksheet) ofthe workbook named appropriately. Please donot use any other software (such as MSWorks or Lotus) to complete the project. Aquality report will include a title worksheet tab, aworksheet tab for the profile of the twocompanies, a worksheet tab for the ratiocalculations and comments, a worksheet tab forthe summary and conclusion, proper citations ifapplicable, and a bibliography worksheet tab forthe references.Organizationand Cohesiveness95%A quality report will include the contentdescribed above in the documentation andformatting section. The ratios should be listed inthe same order in which they appear in theproject information above.Editing1810%A quality report will be free of any spelling,punctuation, or grammatical errors. Sentencesand paragraphs will be clear, concise, andfactually correct. Ratios will be expressed asnumbers or percentages, depending on whatis appropriate, as is shown in the textbook.Note that not all ratios are shown aspercentages. Two decimal places are sufficientfor each of the ratios.Content14480%A quality report will have correct ratiocalculations and accurate supportingcommentary. Any assumptions, if made, shouldbe spelled out clearly. Supporting calculationsmust be shown either as a formula or as texttyped into a different cell.Total180100%A quality report will meet or exceed all of theabove requirements.