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.
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.
Sample Solution
