1a. In class, we went through the common-size and common-base year financial statements for Brady Corp. Unfortunately, Brady cannot find the original file with all the formulas, and so he has asked each of you to recreate it in Excel using formulas. He also wants you to use the sparklines feature to add trend lines as well.
• Just do the common-size balance sheet and income statement.
1b. Perform a 3-step DuPont analysis of Brady Corp’s return on equity (ROE) for 2014, 2015, and 2016. Be sure to write a brief analysis explaining what has caused the changes in ROE and any areas of focus for management. (40 points)
• See file “Assignment_2_Num_1” file for both 1a and 1b
• Do both 1a and 1b in the Excel file provided
2a. Use the Excel file that I provide and the formula sheet in the book (pages 101-103) to make the calculations using Excel. Be sure to use cell references. (Note: You can skip ST3., Part D if you want no penalty. (10 points)
• See file “Assignment_2_Num_2”
2b. Write one sentence (in the Excel File) next to each ratio you calculated in Question 2a. describing what that number means in words. (30 points)
a. For example, if you calculate the average collection period as 40, you should write something like “on average, it takes 40 days for Freemont Corporation to collect its accounts receivable.”