Overview
To measure the financial performance of any company, it is important to analyze its four key financial statements: balance sheets, income statements, cash flow statements, and shareholders’ equity statements. In this assignment, you will:

Visually present the balance sheet to depict what each company owns and what it owes over the past three years.
Visually present the income statement to depict how much money a company made and spent over the past three years.

The visual presentation and analysis will help you understand and compare the performance of both the companies to be acquired and eventually will help you build your recommendation for the acquisition.
Prompt
Use the provided data sets of Company A and Company B to create data visualizations of their financial performance in Power BI. Then, based on the visualizations, write an executive summary interpreting the financial performance of Company A and Company B. Include screenshots from your data visualizations as needed in your summary. Follow the directions in the Power BI Executive Summary Assignment User Manual.
Specifically, you must address the following criteria:

Assets, Liability, and Equity: Summarize how the assets, liabilities, and owner’s equity have changed over three years for Company A and Company B. Include screenshots of your data visualization as follows:

Company A: In Power BI, use the provided balance sheet and construct a set of three clustered column charts, representing:

The assets of Company A as represented in the data during each of the three years
The liabilities and owners’ equity over the same three years

Company B: In Power BI, use the provided balance sheet and construct a set of three stacked column charts, representing:

The assets of Company B as represented in the data during each of the three years
The liabilities and owners’ equity over the same three years

Revenue and Earnings: Use the provided income statements to summarize the gross revenue and net earnings for Company A and Company B over three years. Include screenshots of your data visualization as follows:

Company A: In Power BI, use the provided Company A Financials document and construct a line chart illustrating the visual relationship of revenue, gross profit, total expenses, earnings before tax, net earnings, and taxes.
Company B: In Power BI, use the provided Company B Financials document and construct a line chart illustrating the visual relationship of revenue, gross profit, total expenses, earnings before tax, net earnings, and taxes.

Conclusion : Summarize your observations about the financial performance of both companies. Include any insights you may have about their performance trends or how they have performed compared to each other over the past three years.

Overview

To measure the financial performance of any company, it is important to analyze its four key financial statements: balance sheets, income statements, cash flow statements, and shareholders’ equity statements. In this assignment, you will:
· Visually present the balance sheet to depict what each company owns and what it owes over the past three years.
· Visually present the income statement to depict how much money a company made and spent over the past three years.
The visual presentation and analysis will help you understand and compare the performance of both the companies to be acquired and eventually will help you build your recommendation for the acquisition.

Prompt

Use the provided data sets of Company A and Company B to create data visualizations of their financial performance in Power BI. Then, based on the visualizations, write an executive summary interpreting the financial performance of Company A and Company B. Include screenshots from your data visualizations as needed in your summary. Follow the directions in the 
Power BI Executive Summary Assignment User Manual

.

Specifically, you must address the following criteria:
1.
1. Assets, Liability, and Equity: Summarize how the assets, liabilities, and owner’s equity have changed over three years for Company A and Company B. Include screenshots of your data visualization as follows:
a. Company A: In Power BI, use the provided 
balance sheet
 and construct a set of three clustered column charts, representing:

i. The assets of Company A as represented in the data during each of the three years
ii. The liabilities and owners’ equity over the same three years
b. Company B: In Power BI, use the provided 
balance sheet
 and construct a set of three stacked column charts, representing:

i. The assets of Company B as represented in the data during each of the three years
ii. The liabilities and owners’ equity over the same three years
 
1. Revenue and Earnings: Use the provided income statements to summarize the gross revenue and net earnings for Company A and Company B over three years. Include screenshots of your data visualization as follows:
2. Company A: In Power BI, use the provided 
Company A Financials
 document and construct a line chart illustrating the visual relationship of revenue, gross profit, total expenses, earnings before tax, net earnings, and taxes.
2. Company B: In Power BI, use the provided 
Company B Financials
 document and construct a line chart illustrating the visual relationship of revenue, gross profit, total expenses, earnings before tax, net earnings, and taxes.
1. Conclusion : Summarize your observations about the financial performance of both companies. Include any insights you may have about their performance trends or how they have performed compared to each other over the past three years.

COMPANY B Three Year Data

B_CO_FINANCE Learner Copy Rev 3/14/21

COMPANY B

Illlustrative Data for Educational Purposes

All values shown are in thousands.

2017 2018 2019

Income Statement

Revenue 27,981 26,302 27,091

Cost of Goods Sold (COGS) 15,389 18,411 18,151

Gross Profit 12,591 7,891 8,940

Expenses

Salaries and Benefits 2,910 2,600 2,910

Rent and Overhead 1,354 1,354 1,354

Depreciation and Amortization 2,814 2,806 2,776

Interest 2,700 1,800 1,800

Total Expenses 9,778 8,560 8,840

Earnings Before Tax 2,813 (669) 100

Taxes 788 (141) 21

Net Earnings 2,025 (529) 79

2017 2018 2019

Balance Sheet

Assets

Cash 82,445 82,914 72,944

Accounts Receivable 1,380 1,297 1,336

Inventory 3,078 2,018 1,989

Property and Equipment 37,413 37,007 37,032

Total Assets 124,316 123,236 113,301

Liabilities

Accounts Payable 1,560 1,009 995

Debt 90,000 90,000 80,000

Total Liabilities 91,560 91,009 80,995

Shareholders’ Equity

Equity Capital 33,685 33,685 33,685

Retained Earnings (928) (1,457) (1,378)

Shareholders’ Equity 32,757 32,228 32,307

Total Liabilities and Shareholders’ Equity 124,317 123,236 113,301

2017 2018 2019

Cash Flow Statement

Operating Cash Flow

Net Earnings 2,025 (529) 79

Plus: Depreciation and Amortization 2,814 2,806 2,776

Less: Changes in Working Capital (10,312) (592) 25

Cash from Operations 15,151 2,869 2,830

Investing Cash Flow

Investments in Property and Equipment 2,706 2,400 2,800

Cash from Investing 2,706 2,400 2,800

Financing Cash Flow

Issuance (repayment) of Debt – – (10,000)

Issuance (repayment) of Equity – – –

Cash from Financing – – (10,000)

Net Increase (decrease) in Cash 12,445 469 (9,970)

Opening Cash Balance 70,000 82,445 82,914

Closing Cash Balance 82,445 82,914 72,944

Supporting Schedules

Working Capital Schedule

Accounts Receivable 1,380 1,297 1,336

Inventory 3,078 2,018 1,989

Accounts Payable 1,560 1,009 995

Net Working Capital (NWC) 2,898 2,306 2,331

Change in NWC (10,312) (592) 25

Depreciation Schedule

PPE Opening 37,521 37,413 37,007

Plus Capex 2,706 2,400 2,800

Less Depreciation 2,814 2,806 2,776

PPE Closing 37,413 37,007 37,032

Debt and Interest Schedule

Debt Opening 90,000 90,000 90,000

Issuance (repayment) – – (10,000)

Debt Closing 90,000 90,000 80,000

Interest Expense 2,700 1,800 1,800

COMPANY A Three Year Data

A_CO_FIN Learner Copy Rev 3/14/21

COMPANY A

Illlustrative Data for Educational Purposes

All values shown are in thousands.

2017 2018 2019

Income Statement

Revenue 27,981 28,784 29,610

Cost of Goods Sold (COGS) 15,389 18,997 16,285

Gross Profit 12,591 9,786 13,324

Expenses

Salaries and Benefits 4,510 4,510 4,510

Rent and Overhead 1,804 1,804 1,804

Depreciation and Amortization 2,814 2,806 2,806

Interest 900 900 900

Total Expenses 10,028 10,020 10,020

Earnings Before Tax 2,563 (234) 3,305

Taxes 718 (65) 925

Net Earnings 1,845 (168) 2,379

2017 2018 2019

Balance Sheet

Assets

Cash 62,265 61,708 44,319

Accounts Receivable 1,380 1,419 1,460

Inventory 3,078 3,799 3,257

Property and Equipment 37,413 37,407 37,402

Total Assets 104,136 104,334 86,438

Liabilities

Accounts Payable 1,560 1,926 1,651

Debt 30,000 30,000 10,000

Total Liabilities 31,560 31,926 11,651

Shareholders’ Equity

Equity Capital 33,685 33,685 33,685

Retained Earnings 38,892 38,723 41,103

Shareholders’ Equity 72,577 72,408 74,788

Total Liabilities and Shareholders’ Equity 104,137 104,334 86,439

2017 2018 2019

Cash Flow Statement

Operating Cash Flow

Net Earnings 1,845 (168) 2,379

Plus: Depreciation and Amortization 2,814 2,806 2,806

Less: Changes in Working Capital (10,312) 395 (227)

Cash from Operations 14,971 2,242 5,412

Investing Cash Flow

Investments in Property and Equipment 2,706 2,800 2,800

Cash from Investing 2,706 2,800 2,800

Financing Cash Flow

Issuance (repayment) of Debt – – (20,000)

Issuance (repayment) of Equity – – –

Cash from Financing – – (20,000)

Net Increase (decrease) in Cash 12,265 (558) (17,388)

Opening Cash Balance 50,000 62,265 61,708

Closing Cash Balance 62,265 61,708 44,319

Supporting Schedules

Working Capital Schedule

Accounts Receivable 1,380 1,419 1,460

Inventory 3,078 3,799 3,257

Accounts Payable 1,560 1,926 1,651

Net Working Capital (NWC) 2,898 3,293 3,066

Change in NWC (10,312) 395 (227)

Depreciation Schedule

PPE Opening 37,521 37,413 37,407

Plus Capex 2,706 2,800 2,800

Less Depreciation 2,814 2,806 2,806

PPE Closing 37,413 37,407 37,402

Debt and Interest Schedule

Debt Opening 30,000 30,000 30,000

Issuance (repayment) – – (20,000)

Debt Closing 30,000 30,000 10,000

Interest Expense 900 900 900

COMPANY B Three Year Data

B_CO_FINANCE Learner Copy Rev 3/14/21

COMPANY B

Illlustrative Data for Educational Purposes

All values shown are in thousands.

2017 2018 2019

Income Statement

Revenue 27,981 26,302 27,091

Cost of Goods Sold (COGS) 15,389 18,411 18,151

Gross Profit 12,591 7,891 8,940

Expenses

Salaries and Benefits 2,910 2,600 2,910

Rent and Overhead 1,354 1,354 1,354

Depreciation and Amortization 2,814 2,806 2,776

Interest 2,700 1,800 1,800

Total Expenses 9,778 8,560 8,840

Earnings Before Tax 2,813 (669) 100

Taxes 788 (141) 21

Net Earnings 2,025 (529) 79

2017 2018 2019

Balance Sheet

Assets

Cash 82,445 82,914 72,944

Accounts Receivable 1,380 1,297 1,336

Inventory 3,078 2,018 1,989

Property and Equipment 37,413 37,007 37,032

Total Assets 124,316 123,236 113,301

Liabilities

Accounts Payable 1,560 1,009 995

Debt 90,000 90,000 80,000

Total Liabilities 91,560 91,009 80,995

Shareholders’ Equity

Equity Capital 33,685 33,685 33,685

Retained Earnings (928) (1,457) (1,378)

Shareholders’ Equity 32,757 32,228 32,307

Total Liabilities and Shareholders’ Equity 124,317 123,236 113,301

2017 2018 2019

Cash Flow Statement

Operating Cash Flow

Net Earnings 2,025 (529) 79

Plus: Depreciation and Amortization 2,814 2,806 2,776

Less: Changes in Working Capital (10,312) (592) 25

Cash from Operations 15,151 2,869 2,830

Investing Cash Flow

Investments in Property and Equipment 2,706 2,400 2,800

Cash from Investing 2,706 2,400 2,800

Financing Cash Flow

Issuance (repayment) of Debt – – (10,000)

Issuance (repayment) of Equity – – –

Cash from Financing – – (10,000)

Net Increase (decrease) in Cash 12,445 469 (9,970)

Opening Cash Balance 70,000 82,445 82,914

Closing Cash Balance 82,445 82,914 72,944

Supporting Schedules

Working Capital Schedule

Accounts Receivable 1,380 1,297 1,336

Inventory 3,078 2,018 1,989

Accounts Payable 1,560 1,009 995

Net Working Capital (NWC) 2,898 2,306 2,331

Change in NWC (10,312) (592) 25

Depreciation Schedule

PPE Opening 37,521 37,413 37,007

Plus Capex 2,706 2,400 2,800

Less Depreciation 2,814 2,806 2,776

PPE Closing 37,413 37,007 37,032

Debt and Interest Schedule

Debt Opening 90,000 90,000 90,000

Issuance (repayment) – – (10,000)

Debt Closing 90,000 90,000 80,000

Interest Expense 2,700 1,800 1,800

COMPANY A Three Year Data

A_CO_FIN Learner Copy Rev 3/14/21

COMPANY A

Illlustrative Data for Educational Purposes

All values shown are in thousands.

2017 2018 2019

Income Statement

Revenue 27,981 28,784 29,610

Cost of Goods Sold (COGS) 15,389 18,997 16,285

Gross Profit 12,591 9,786 13,324

Expenses

Salaries and Benefits 4,510 4,510 4,510

Rent and Overhead 1,804 1,804 1,804

Depreciation and Amortization 2,814 2,806 2,806

Interest 900 900 900

Total Expenses 10,028 10,020 10,020

Earnings Before Tax 2,563 (234) 3,305

Taxes 718 (65) 925

Net Earnings 1,845 (168) 2,379

2017 2018 2019

Balance Sheet

Assets

Cash 62,265 61,708 44,319

Accounts Receivable 1,380 1,419 1,460

Inventory 3,078 3,799 3,257

Property and Equipment 37,413 37,407 37,402

Total Assets 104,136 104,334 86,438

Liabilities

Accounts Payable 1,560 1,926 1,651

Debt 30,000 30,000 10,000

Total Liabilities 31,560 31,926 11,651

Shareholders’ Equity

Equity Capital 33,685 33,685 33,685

Retained Earnings 38,892 38,723 41,103

Shareholders’ Equity 72,577 72,408 74,788

Total Liabilities and Shareholders’ Equity 104,137 104,334 86,439

2017 2018 2019

Cash Flow Statement

Operating Cash Flow

Net Earnings 1,845 (168) 2,379

Plus: Depreciation and Amortization 2,814 2,806 2,806

Less: Changes in Working Capital (10,312) 395 (227)

Cash from Operations 14,971 2,242 5,412

Investing Cash Flow

Investments in Property and Equipment 2,706 2,800 2,800

Cash from Investing 2,706 2,800 2,800

Financing Cash Flow

Issuance (repayment) of Debt – – (20,000)

Issuance (repayment) of Equity – – –

Cash from Financing – – (20,000)

Net Increase (decrease) in Cash 12,265 (558) (17,388)

Opening Cash Balance 50,000 62,265 61,708

Closing Cash Balance 62,265 61,708 44,319

Supporting Schedules

Working Capital Schedule

Accounts Receivable 1,380 1,419 1,460

Inventory 3,078 3,799 3,257

Accounts Payable 1,560 1,926 1,651

Net Working Capital (NWC) 2,898 3,293 3,066

Change in NWC (10,312) 395 (227)

Depreciation Schedule

PPE Opening 37,521 37,413 37,407

Plus Capex 2,706 2,800 2,800

Less Depreciation 2,814 2,806 2,806

PPE Closing 37,413 37,407 37,402

Debt and Interest Schedule

Debt Opening 30,000 30,000 30,000

Issuance (repayment) – – (20,000)

Debt Closing 30,000 30,000 10,000

Interest Expense 900 900 900

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