ACCT 711 – Project on Financial Statement Analysis.

FedEx is a popular global firm, located in Tennessee. You are given financial statements of FedEx and UPS for several years.

Answer the following questions using these financial statements:

Question 1. This question has 2 parts:

Part a. (1.5 points) Prepare the common size income statement for the firms (both FedEx and UPS) and for the years 2012 through 2021 (you can copy the statements in sheet “Income Statement” and then prepare the Common Size Income Statements).

Part b. (1.5 points) Prepare the common size Balance Sheet for the firms (both FedEx and UPS) for the years 2012 through 2021 (you can copy the Balance Sheets in sheet “Balance Sheet” and then prepare the Common Size Balance Sheet).

Question 2. (3 points). Analyze the financial performance of each company over the last 5 years? Comment on the change in the financial position of each company during this last 5-year period.

You can use the above common size income statements and balance sheets, or any other information provided in the statements. You should analyze the evolution of firms’ profitability, liquidity/solvency, asset management (asset turnover).

Question 3. (6 points). Compare the performance of these two firms. Your answer should state which firm has better performance over the last 5 years? Which firm has a sounder financial position over the last 5 years? Which firm seems to manage its assets more efficiently? Provide evidence to support your conclusion?

Instructions (See the “MBA SLO4-Critical Thinking” for Rubrics):

Type your answers in a word file, then upload your work on Canvas.

Due date: See the syllabus