3. Exercises Financial Statements
3.1 Analysis Statements of Financial Positions (Balance Sheet)
Part 1: What do the two corporations own?
Define assets and describe the current and the non-current assets of the two companies you analyze. Which percentage of the total amount of assets is occupied by current and which percentage do non-current assets represent? Which assets do you find on the corporations balance sheets and how do the two companies current- and non-current assets differ? How do the two companies differ from a volume point of view (total amount of assets) and differ regarding the split between a current and non-current point of view.
Part 2: How are the corporations financed?
Define liability and differentiate between current and non-current liabilities. Define equity and differentiate between Paid-in capital and Retained earnings. Which percentage of the total amount of assets is occupied by liabilities and which percentage does the total amount of equity represent? Calculate the percentage of liability and equity compared to the total amount of assets. How do the two companies differ from a volume point of view (total amount liabilities and total amount of equity)? How do the two companies differ from a split of liabilities and equity point of view (in other words: how much of the total assets is financed by debt and how much of the total assets of the corporation is financed by equity (measured in percentages)?
3.2 Analysis Income Statement (Profit and Loss Account)
What is the business of the company? What kind of services do the offer or what kind of products they produce? Please come up with an outline comparing at least two accounting years of each corporation with regard to revenues, expenses, net income and net profit margin (before and after tax).
How do the two companies differ regarding revenues, expenses, expense ratios, net income and net profit margin (before and after tax)? Are the differences linked to the industry they are active in?
The two cooporations you will analyze are walmart and royal dutch shell.
I have attached the profit and loss acount + balance sheet so you dont need to go searching for it.