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 7th
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.
,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
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 co
Hannifin. Questions require you to calculate and interpret a wide range of ratios. In later modules, you will create a set of
company's equity.
The analysis in this project is similar to the analysis performed by financial analysts, lenders, and investors. You might not
mastered financial reporting at a sufficient level to be able to step into any role in an organization.
In Module 1 you will familiarize yourself with the companies' operations, assess their competitive environment, and begin
1. Obtain financial statements
1.a. Download the files with the financial statements in Excel for each company on the MyBusinessCourse learning mana
1.b. Also download the pdf version of each company's 2022 annual report from the company website. These are linked t
website for links.
NOTE: You might notice some small differences between the financials in the Excel spreadsheets and those in the annual
annual reports in a few places. One difference is the Excel balance sheet includes four years as compared to the two year
for three years (more about that later). Other differences relate to presentation and style. For example, neither compan
omitted a line for "Operating income." The Excel spreadsheet shows those two items (and others) to make the financial s
submitted work, you should ALWAYS use the Excel version of the financial statements so that your answers are consiste
2. 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 ques
2.a. What is the fiscal year end date for the company?
Parker Hannifin ($ thousands)
The fiscal year end is June 30.
2.b. What are the companies' main business activities? Hint: See Item #1 in the Form 10-K.
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.
2.c. Find the audit report. Who are the auditors? Are any concerns raised in the reports?
Parker Hannifin ($ thousands)
Deloitte
2.d. Do the audit reports differ significantly from the unqualified report shown in this module?
Parker Hannifin ($ thousands)
No, the audit report is unqualified.
, 3 Assess the companies’ business environments
Use the annual report and the financial statements, along with appropriate websites, to assess the companies’ busin
competitive landscape for the two companies. The aim is to understand the competitive position of each company s
Parker Hannifin SWOT Analysis (Click here)
4 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 th
4.a. BALANCE SHEET - Simplified (See exhibit 1.3)
Parker Hannifin ($ thousands)
Consolidated Balance Sheet
June 30
2022 2021 2020
Assets
Short-term assets 12,046,644 5,616,750 5,034,768
Long-term assets 13,897,299 14,724,450 14,852,985
Total assets 25,943,943 20,341,200 19,887,753
Liabilities
Short-term liabilities 5,859,318 3,096,503 3,148,373
Long-term liabilities 11,224,705 8,831,027 10,497,610
Total liabilities 17,084,023 11,927,530 13,645,983
Stockholders' equity
Contributed capital 417,830 420,142 507,108
Retained earnings 15,661,808 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' equity 8,848,011 8,398,307 6,227,224
Noncontrolling interests 11,909 15,363 14,546
Total equity 8,859,920 8,413,670 6,241,770
Total liabilities and equity 25,943,943 20,341,200 19,887,753
4.b. INCOME STATEMENT - Simplified (See exhibit 1.4)
Parker Hannifin ($ thousands)
Consolidated Income Statement
June 30
2022 2021 2020
Sales 15,861,608 14,347,640 13,695,520
Cost of sales 11,387,267 10,449,680 10,292,291
, Gross profit 4,474,341 3,897,960 3,403,229
Selling, general & admin 1,627,116 1,527,302 1,656,553
Other operating expenses (7,121) (109,332) (1,227)
Operating income 2,854,346 2,479,990 1,747,903
Interest and other expenses (income), net 1,240,120 233,033 241,049
Income before tax 1,614,226 2,246,957 1,506,854
Income tax 298,040 500,096 304,522
Net income 1,316,186 1,746,861 1,202,332
Noncontrolling interests 581 761 362
Net income attributable to the company 1,315,605 1,746,100 1,201,970
4.c. STATEMENT OF EQUITY- Simplified (See exhibit 1.5)
Parker Hannifin ($ thousands)
Consolidated Statement of Equity
For the year ended June 30, 2022
Contributed Retained Treasury Stock
Capital Earnings
Balance at beginning of year 420,142 14,915,497 (5,370,605)
Stock issuances
Net income 1,315,605
Dividends declared (569,294)
Stock repurchases (380,334)
Other (2,312) 62,510
Balance at end of year 417,830 15,661,808 (5,688,429)
4.d. STATEMENT OF CASH FLOWS- Simplified (See exhibit 1.6)
Parker Hannifin ($ thousands)
Consolidated Cash Flow Statement
For the year ended June 30
2022 2021 2020
Cash from operating activities 2,441,730 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 cash 5,914,759 47,603 (2,534,253)
Cash at beginning of year 733,117 685,514 3,219,767
Cash at end of year 6,647,876 733,117 685,514
5 Calculate and compare some basic profitability metrics and return ratios
5.a. Determine the relative proportion of short- and long-term assets.
Parker-Hannifin
2022 2021 2020
Short-term assets 12,046,644 5,616,750 5,034,768
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 7th
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.
,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
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 co
Hannifin. Questions require you to calculate and interpret a wide range of ratios. In later modules, you will create a set of
company's equity.
The analysis in this project is similar to the analysis performed by financial analysts, lenders, and investors. You might not
mastered financial reporting at a sufficient level to be able to step into any role in an organization.
In Module 1 you will familiarize yourself with the companies' operations, assess their competitive environment, and begin
1. Obtain financial statements
1.a. Download the files with the financial statements in Excel for each company on the MyBusinessCourse learning mana
1.b. Also download the pdf version of each company's 2022 annual report from the company website. These are linked t
website for links.
NOTE: You might notice some small differences between the financials in the Excel spreadsheets and those in the annual
annual reports in a few places. One difference is the Excel balance sheet includes four years as compared to the two year
for three years (more about that later). Other differences relate to presentation and style. For example, neither compan
omitted a line for "Operating income." The Excel spreadsheet shows those two items (and others) to make the financial s
submitted work, you should ALWAYS use the Excel version of the financial statements so that your answers are consiste
2. 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 ques
2.a. What is the fiscal year end date for the company?
Parker Hannifin ($ thousands)
The fiscal year end is June 30.
2.b. What are the companies' main business activities? Hint: See Item #1 in the Form 10-K.
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.
2.c. Find the audit report. Who are the auditors? Are any concerns raised in the reports?
Parker Hannifin ($ thousands)
Deloitte
2.d. Do the audit reports differ significantly from the unqualified report shown in this module?
Parker Hannifin ($ thousands)
No, the audit report is unqualified.
, 3 Assess the companies’ business environments
Use the annual report and the financial statements, along with appropriate websites, to assess the companies’ busin
competitive landscape for the two companies. The aim is to understand the competitive position of each company s
Parker Hannifin SWOT Analysis (Click here)
4 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 th
4.a. BALANCE SHEET - Simplified (See exhibit 1.3)
Parker Hannifin ($ thousands)
Consolidated Balance Sheet
June 30
2022 2021 2020
Assets
Short-term assets 12,046,644 5,616,750 5,034,768
Long-term assets 13,897,299 14,724,450 14,852,985
Total assets 25,943,943 20,341,200 19,887,753
Liabilities
Short-term liabilities 5,859,318 3,096,503 3,148,373
Long-term liabilities 11,224,705 8,831,027 10,497,610
Total liabilities 17,084,023 11,927,530 13,645,983
Stockholders' equity
Contributed capital 417,830 420,142 507,108
Retained earnings 15,661,808 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' equity 8,848,011 8,398,307 6,227,224
Noncontrolling interests 11,909 15,363 14,546
Total equity 8,859,920 8,413,670 6,241,770
Total liabilities and equity 25,943,943 20,341,200 19,887,753
4.b. INCOME STATEMENT - Simplified (See exhibit 1.4)
Parker Hannifin ($ thousands)
Consolidated Income Statement
June 30
2022 2021 2020
Sales 15,861,608 14,347,640 13,695,520
Cost of sales 11,387,267 10,449,680 10,292,291
, Gross profit 4,474,341 3,897,960 3,403,229
Selling, general & admin 1,627,116 1,527,302 1,656,553
Other operating expenses (7,121) (109,332) (1,227)
Operating income 2,854,346 2,479,990 1,747,903
Interest and other expenses (income), net 1,240,120 233,033 241,049
Income before tax 1,614,226 2,246,957 1,506,854
Income tax 298,040 500,096 304,522
Net income 1,316,186 1,746,861 1,202,332
Noncontrolling interests 581 761 362
Net income attributable to the company 1,315,605 1,746,100 1,201,970
4.c. STATEMENT OF EQUITY- Simplified (See exhibit 1.5)
Parker Hannifin ($ thousands)
Consolidated Statement of Equity
For the year ended June 30, 2022
Contributed Retained Treasury Stock
Capital Earnings
Balance at beginning of year 420,142 14,915,497 (5,370,605)
Stock issuances
Net income 1,315,605
Dividends declared (569,294)
Stock repurchases (380,334)
Other (2,312) 62,510
Balance at end of year 417,830 15,661,808 (5,688,429)
4.d. STATEMENT OF CASH FLOWS- Simplified (See exhibit 1.6)
Parker Hannifin ($ thousands)
Consolidated Cash Flow Statement
For the year ended June 30
2022 2021 2020
Cash from operating activities 2,441,730 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 cash 5,914,759 47,603 (2,534,253)
Cash at beginning of year 733,117 685,514 3,219,767
Cash at end of year 6,647,876 733,117 685,514
5 Calculate and compare some basic profitability metrics and return ratios
5.a. Determine the relative proportion of short- and long-term assets.
Parker-Hannifin
2022 2021 2020
Short-term assets 12,046,644 5,616,750 5,034,768
