Project guidelines For this project, you are required to answer the following questions. The total points for this assignment is 200 (out of 350) points. You must conduct your calculations in Excel....

Part B
            MGMT E-2600
            Financial Statement Analysis
            Spring 2020 Semester
            Final Exam - Part B: (Take Home)
            Total Points: 200 points
            
             Deadline: 5/6/2020
            For Part B of your final exam, you are required to answer the following three questions. The total points for this assignment is 200 (out of 350) points. You may conduct your calculations in Excel. However, you should copy and paste it in a PDF file for submission. Submit only one file. Please note your paper will be submitted to turnitin.com for originality. The service compares your writing with all the papers submitted in every school, text on the internet, books, and any other published material.
            1-Critically analyze and articulate Financial Ratios Analysis as a tool for analyzing financial statements and financial health of a business entity. Discuss its advantages and limitations. (20 points)
            2-Given the information for the HES Group Inc., calculate the following liquidity, solvency, and coverage ratios for the company for 2019, 2018, and 2017. (60 pts)
            Return on equity
            Return on net operating assets
            Times interest earned
            EBITDA coverage
            Operating cash flow to debt
            Free cash flow to debt
            Current ratio
            Quick ratio
            Liabilities-to-equity ratio
            Total debt-to-equity ratio.
            3- Compare and contrast your 2019 ratio calculations with the industry's given data. Analyze and discuss your findings. (30 pts)
            4- Using the HES’s financial statements, apply two methods of disaggregation of ROE for 2017, 2018, and 2019. Identify the positive and negative points of your findings, discuss and analyze them. (30 pts)
            5- Using the following ratio analysis methods, perform the intra-company comparisons (the company with itself) for the past three years of financial data. Discuss your findings and observations of any trends.
                  a- Horizontal Ratio Analysis (15 points)
                  b- Common Size Analysis (15 points)
            6- As a financial statement analyst, assert your opinions of the company's financial health and credit risk. (30 pts)
            HES’s combined (Federal and State) corporate tax rate is 27% for 2019, and 35% for 2017 and 2018.
            To help you with the assignment, the data is provided in the attached Excel spreadsheets.
            Good luck!
            Dr. Gandevani
HES Fianancials
    HES GROUP
    Consolidated Balance Sheet
    At December 31,
    (In millions)    2019    2018    2017
    Cash and equivalents    $ 8,132.00    $ 3,287.00    $ 4,422.00    $ 4,845.00
    Receivables, net    10,934.00    9,501.00    8,401.00    $ 1,433.00
    Inventories, net    4,913.00    4,840.00    4,650.00    $ 73.00
    Deferred income taxes    1,741.00    2,030.00    2,338.00    $ (289.00)
    Other current assets    1,300.80    1,700.80    1,659.00    $ (400.00)
    Total current assets    $ 27,020.80    $ 21,358.80    $ 21,470.00    $ 5,662.00
    Property, plant and equipment, net    8,780.00    6,980.00    7,145.00
    Goodwill    16,557.00    16,592.00    16,655.00
    Deferred income taxes    5,560.00    6,993.00    7,112.00
    Other noncurrent assets    7,378.00    7,317.00    7,410.00
    Total assets    $ 65,295.80    $ 59,240.80    $ 59,792.00
    Accounts payable    $ 3,435.00    $ 2,061.00    $ 1,998.00    $ 1,374.00
    Customer advances and amounts in excess of costs    $ 10,158.00    $ 10,405.00    $ 10,005.00    $ (247.00)
    Salaries, benefits and payroll taxes    $ 2,494.00    $ 2,238.00    $ 2,198.00    $ 256.00
    Current portion of long-term debt    $ - 0    $ 240.00    $ 189.00    $ (240.00)
    Other current liabilities    $ 4,004.00    $ 1,893.00    $ 1,765.00    $ 2,111.00
    Total current liabilities    $ 20,091.00    $ 16,837.00    $ 16,155.00    $ 3,254.00
    Long-term debt, net    $ 9,843.00    $ 9,853.00    $ 9,788.00
    Accrued pension liabilities    $ 14,978.00    $ 24,445.00    $ 18,655.00
    Other postretirement benefit liabilities    $ 1,443.20    $ 1,952.00    $ 1,833.00
    Other noncurrent liabilities    $ 5,976.00    $ 6,091.00    $ 6,543.00
    Total liabilities    $ 52,331.20    $ 59,178.00    $ 52,974.00
    Common stock    $ 510.40    $ 513.60    $ 509.00
    Retained...