Solutions Manual for Financial

Solutions Manual for Financial Statement Analysis & Valuation 7th Edition By Easton, McAnally, Crawford, Sommers (All Chapters 1-15, 100% Complete, A+ Garde)

This is the Only Original and Complete Solutions Manual for 7 th

Edition. All other files in the Market are Fake/Old/Wring Edition.This Solutions Manual is in Excel format; Excel Files Download Link is at the end of PDF file. 1 / 4

1.a.

1.b.

2.a.

2.b.

2.c.

2.d.

• Familiarize yourself with basic annual report information

Explore the front end of the 10-K (Items 1 through 7A) to familiarize yourself with the company basics. The following questions guide us as we begin our analysis.What is the fiscal year end date for the company?

• Obtain financial statements

Download the files with the financial statements in Excel for each company on the MyBusinessCourse learning management system.Also download the pdf version of each company's 2022 annual report from the company website. These are linked to the "Investor Relations" page, look at the banner at the bottom of the company's website for links.NOTE: You might notice some small differences between the financials in the Excel spreadsheets and those in the annual reports. The Excel version has been prepared for learning purposes and differ from the annual reports in a few places. One difference is the Excel balance sheet includes four years as compared to the two years presented in the annual report. We added more years so that you can calculate ratios for three years (more about that later). Other differences relate to presentation and style. For example, neither company includes a line for "Gross profit" in their income statement and Parker Hannifin also omitted a line for "Operating income." The Excel spreadsheet shows those two items (and others) to make the financial statements consistent with the textbook examples and with the other company. For your submitted work, you should ALWAYS use the Excel version of the financial statements so that your answers are consistent with the solutions provided.In Module 1 you will familiarize yourself with the companies' operations, assess their competitive environment, and begin to explore their financial reports.Ongoing Project Module 1 Ongoing Project Description An important part of learning is application. To learn accounting, we must practice the skills taught and apply those skills to real-world problems. To that end, we have designed a project to reinforce the lessons in each module and apply them to real world companies.By working throught the questions in each module, you will complete a comprehensive analysis of two publicly traded companies that operate in roughly the same industry: Illinois Tool Works and Parker Hannifin. Questions require you to calculate and interpret a wide range of ratios. In later modules, you will create a set of forecasted financial statements for each company and then estimate a value for each company's equity.The analysis in this project is similar to the analysis performed by financial analysts, lenders, and investors. You might not aspire to those roles, but by completing a project of this magnitude, you will have mastered financial reporting at a sufficient level to be able to step into any role in an organization.Parker Hannifin ($ thousands) No, the audit report is unqualified.Do the audit reports differ significantly from the unqualified report shown in this module?Deloitte Parker Hannifin ($ thousands) Parker Hannifin ($ thousands) Parker-Hannifin Corporation is a leading worldwide diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for a wide variety of mobile, industrial and aerospace markets.Parker Hannifin ($ thousands) The fiscal year end is June 30.What are the companies' main business activities? Hint: See Item #1 in the Form 10-K.Find the audit report. Who are the auditors? Are any concerns raised in the reports? 2 / 4

3 4 4.a.

2022 2021 2020

Assets Short-term assets12,046,644 5,616,750 5,034,768 Long-term assets13,897,299 14,724,450 14,852,985 Total assets25,943,943 20,341,200 19,887,753 Liabilities Short-term liabilities5,859,318 3,096,503 3,148,373 Long-term liabilities11,224,705 8,831,027 10,497,610 Total liabilities17,084,023 11,927,530 13,645,983 Stockholders' equity Contributed capital417,830 420,142 507,108 Retained earnings15,661,808 14,915,497 13,643,907 Treasury stock(5,688,429) (5,370,605) (5,364,916) Other equity(1,543,198) (1,566,727) (2,558,875) Total shareholders' equity8,848,011 8,398,307 6,227,224 Noncontrolling interests11,909 15,363 14,546 Total equity8,859,920 8,413,670 6,241,770 Total liabilities and equity25,943,943 20,341,200 19,887,753 4.b.

2022 2021 2020

Sales15,861,608 14,347,640 13,695,520 Cost of sales11,387,267 10,449,680 10,292,291 BALANCE SHEET - Simplified (See exhibit 1.3) INCOME STATEMENT - Simplified (See exhibit 1.4) Parker Hannifin SWOT Analysis (Click here) June 30 Consolidated Balance Sheet Gain a big picture understanding of the four financial statements Complete the following highly-summarized financial statements for each company. Note, you will need to convert the Parker Hannifin financial statements to $ millions.Parker Hannifin ($ thousands) June 30 Parker Hannifin ($ thousands) Consolidated Income Statement Use the annual report and the financial statements, along with appropriate websites, to assess the companies’ business environment. Use Porter’s five forces or a SWOT analysis to briefly analyze the competitive landscape for the two companies. The aim is to understand the competitive position of each company so we can assess their financial statements in a broader business context.Assess the companies’ business environments 3 / 4

Gross profit4,474,341 3,897,960 3,403,229 Selling, general & admin1,627,116 1,527,302 1,656,553 Other operating expenses(7,121) (109,332) (1,227) Operating income2,854,346 2,479,990 1,747,903 Interest and other expenses (income), net 1,240,120 233,033 241,049 Income before tax1,614,226 2,246,957 1,506,854 Income tax 298,040 500,096 304,522 Net income1,316,186 1,746,861 1,202,332 Noncontrolling interests581 761 362 Net income attributable to the company 1,315,605 1,746,100 1,201,970 4.c.Contributed Capital Retained Earnings Treasury Stock Balance at beginning of year420,142 14,915,497 (5,370,605) Stock issuances Net income1,315,605 Dividends declared(569,294) Stock repurchases(380,334) Other(2,312) 62,510 Balance at end of year417,830 15,661,808 (5,688,429) 4.d.

2022 2021 2020

Cash from operating activities2,441,730 2,575,001 2,070,949 Cash from (for) investing activities (418,837) (13) (5,023,993) Cash from (for) financing activities 3,915,636 (2,623,339) 449,310 Effect of exchange rates on cash(23,770) 95,954 (30,519) Net increase (decrease) in cash5,914,759 47,603 (2,534,253) Cash at beginning of year733,117 685,514 3,219,767 Cash at end of year6,647,876 733,117 685,514 5 5.a.

2022 2021 2020

Short-term assets 12,046,644 5,616,750 5,034,768 STATEMENT OF EQUITY- Simplified (See exhibit 1.5) For the year ended June 30 Parker-Hannifin Determine the relative proportion of short- and long-term assets.Calculate and compare some basic profitability metrics and return ratios For the year ended June 30, 2022 Parker Hannifin ($ thousands) Consolidated Cash Flow Statement STATEMENT OF CASH FLOWS- Simplified (See exhibit 1.6) Parker Hannifin ($ thousands) Consolidated Statement of Equity

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