SOLUTION: HMD 340 UNLV Income Statement Horizontal Analysis Las Vegas Sands Corp Case Study

HMD 340, sec 1002
Fall 2020
Project 1
The purpose of this project is two-fold:
1) to become sufficient in basic Excel functionality, including formulas and formatting
2) to analyze the operations of a hospitality company
In addition this project will address the following learning objectives required of this course.
UNLV University Undergraduate Learning Objectives:
-Inquiry and Critical Thinking: Graduates are able to identify problems, articulate
questions, and use various forms of research and reasoning to guide the collection,
analysis, and use of information related to those problems.
-Communication: Graduates are able to write and speak effectively to both general and
specialized audiences, create effective visuals that support written or spoken
communication, and use electronic media common to one’s field or profession.
Hospitality College Learning Objectives:
-Communicate effectively in written, spoken, visual and digital modes to different
audiences (e.g. industry leaders, employees, employers, faculty and peers).
-Manage all forms of capital (e.g., human, financial) in an ethical and sustainable way.
-Analyze financial, marketing, and operational results and outcomes for hospitality
-Demonstrate effective management techniques in hospitality operations (hotel, F&B,
gaming, meetings, events, etc.).
You will prepare the income statement and balance sheet for 2 calendar years (2017-2018),
conduct a horizontal and vertical analysis, and calculate ratios of the company you choose. As a
group you will analyze these financials statements and ratios to evaluate your company
performance between the 2 years.
This project is intended to integrate the material learned in class and specifically Chapters 2, 3,
and 5. This project will give students an application example that is very common in industry.
This project is typically the first steps hospitality management takes in not only analyzing their
financial performance and making adjustments if necessary, but also preparing to conduct their
forecast and budgets, which we cover in Chapter 9 and 10 (and which you will do in Project 2).
Each group will have 5 students, you can sign up through WebCampus.
Submissions are expected to resemble those presented to an upper level manager in a hospitality
operation and will give students an opportunity to apply written communication skills.
You are expressly forbidden to consult anyone besides your partners (and
only on the group part) about this project.
If you need assistance please see the professor during office hours or make
an appointment in sufficient time prior to the due date.
This project is to be completed using a publicly traded hospitality company’s financial
statements (10-Ks). A hospitality company (Las Vegas Sands) will provide for all the tasks.
Vertical and Horizontal Analysis
1. You are to start by building in Excel the year end 2017 and 2018 Income Statement and
Balance Sheet for your hospitality firm based off the company’s 10-K (If there is a 10-KA
must use that). All statements should have account names first than the 2018 numbers in the
second column and 2017 in the third column. No other years will be accepted without
prior approval. If your company does not do a calendar year end (or within 1 month of
the year end) you must come see me or email me what their year-end is and get
2. The Income Statement must have subtotals for Total Revenue, Total Operating Expenses,
Operating Income, Income Before Taxes, and Net Income at a minimum. You may have
more subtotals based on the company’s financial statements but you MUST have these 5 at a
minimum. You must include all subtotals off the 10-K in addition to these stated. All
subtotals must be formulas and not hardcoded numbers. If you believe your company
financials do not have these subtotals you must check with the professor for a variation to
this requirement. Anything turned in without these will be penalized points. If you do not
know what a subtotal should include do not ignore it, come to office hours to ask.
Only go to Net Income or Net Loss. If your company has multiple Net Income/(Loss) lines
due to subsidiary companies and such, go all the way to the last one right before earning per
share. Do not include any Earnings Per Share information or additional information below
3. The Balance Sheet must have subtotals and totals for Current Assets, Long-term Assets,
Other Assets, Total Assets, Current Liabilities, Long-term Liabilities, Total Liabilities, Total
Stockholders’ Equity, and Total Liabilities and Stockholders’ Equity at a minimum. More
subtotals may be added based on the company’s financial statements but you MUST have
these 9 even if the company does not show these subtotals. You must include all subtotals
off the 10-K. All subtotals and totals must be formulas and not hardcoded numbers.
4. You are to do a horizontal and vertical analysis for each statement. You are to do all vertical
and horizontal analysis possible given that you only have 2 years of data. Do not do any
more years.
1. Calculate the following ratios for both years:
Current Ratio (coverage ratio)
Working Capital (show to nearest dollar, ie. $10,000)
Debt-to-Equity (coverage ratio)
Asset Turnover (turnover ratio)
Profit Margin (percentage ratio)
Return on Assets (percentage ratio)
Return on Equity (percentage ratio)
Earnings Per Share (Per unit basis – show in dollars and cents, ie. $1.25)
If your company is not publicly traded, you must check with the professor to get an
alternative ratio to calculate. You cannot just ignore this ratio.
i) Solvency Ratio (coverage ratio)
j) Number of Times Interest Earned (coverage ratio) – If you company does not have
interest expense you must see the professor to validate and be given an alternative ratio to
calculate. If you calculate this and have no interest and did not check you will receive no
credit on this ratio.
For any formulas that use Net Income, you must use your company’s bottom Net Income
(the last one). Using a different Net Income line will cause you to get no points.
Some of these ratios may require you to get additional information that is not on the
financial statements. Do not ignore those ratios, make sure to get the additional
All ratios must be linked to the Income Statement and/or Balance Sheet and the only
numbers allowed to be hardcoded are those that do not appear on the financial statements.
1. Based on the horizontal and vertical analysis and the ratios you calculated, as a group select 5
accounts per statement that as management of this company you would want to analyze. You
must select accounts not subtotals or totals. You should have a write-up on 10 accounts (5
from the Income Statement and 5 from the Balance Sheet). Each account must answer the
following 2 questions (See Criteria section for an example). You cannot select Accounts
Receivable (or an equivalent account) as an account to analyze since the example given
below is on that account.
a) For each account you must provide a short explanation (1-2 sentences) of why you
choose to analyze this account. Your reasoning for account selection should be based on
class discussions, what you have learned in class, and the results of your horizontal and
vertical analysis or ratio calculations. Specifically discuss what on the horizontal and
vertical analysis or ratios calculations made you choose this account and this includes
stating the exact numbers that caused you to select these accounts. If you choose an
account that had minimal change based on your analysis you must support why you
choose to look into an account that did not have a big change.
b) After discussing why you selected the account you must explain what caused the change
in the account. You must get this information from the 10-K directly and cite the page
number you got your information from. If you cannot find a valid explanation for the
change you must select another account (although most accounts have a reason but it may
not be explicitly stated). If you do not understand the change, please see the professor for
assistance. Do not guess. Make sure you include the correct reason. For instance if the
account went down (like in the example below for accounts receivable) you cannot state
that the allowance for doubtful accounts, which is a contra asset account went down.
This account going down would cause Accounts Receivable to go up. Also make sure to
address an issue that was a main reason for the change. For instance, if the account
changed $10 million, do not include an explanation for $1 million of the change when
there is also information on $4 million of the change.
Team Member Evaluation
If you want (not required though) you may do a team member evaluation and turn it in on the
same day you turn your project in. Just like working in teams in the real world, sometimes
certain members of a group do not do their share of work even though everyone gets the same
credit. After reviewing the evaluations if the majority of team members give significantly lower
scores and is supported with comments and proof such as unanswered emails, that team
member’s score will be lowered and if the member did no work they will receive a “0”. The
evaluations along with all supporting proof should be turned in on the same date and can be
turned in during office hours instead of in the classroom. Evaluations turned in with no proof
will not be accepted. The instructor may request a meeting with you about your evaluation before
adjusting teammates grades.
Due Date
The project is due on Friday, October 2nd, 2020 before midnight through WebCampus.
Projects received after this date will be penalized 10 points (out of 100) each 24-hour period they
are late (beginning at the start of class). This includes not submitting both parts online by the
due date. You can earn extra credit by turning the project in at the beginning of class or before
Friday, October 2nd, 2020. All projects turned in for extra credit will earn 1% point additional on
your final class grade. Since this project has 2 parts, you can turn in only the Excel portion for
extra credit of half, which is 0.5% point additional on your final class grade.
Projects must be submitted through online (regular due date and extra credit date). Any projects
not completed are not eligible for extra credit including not having all pages or parts attached.
It is imperative you turn in professional work and not leave this until the last minute. I will
not accept unprofessional work just as your manager would not. Unprofessional work is
not college level, it’s extremely hard to grade, and the scores are extremely low. If I
determine your work is unprofessional, such as no formatting on the statements, multiple
pages per statement, etc. you will incur a 15 point penalty and be informed via email that
you then have 24 hours to fix and resubmit. I will keep your old submission and you need
to only turn in a new submission. If you do not resubmit within 24 hours, you start
incurring the 10 point per additional 24 hour penalty. You need to make sure your paper
is professional before submitting and it is better you take the late penalty of 10 points by
determining yourself it its not ready than to have me penalize you 15.
1. All vertical and horizontal analysis and ratios must be completed using Excel. All write-ups
must be completed in Word. Handwritten assignments or portion thereof are unacceptable.
2. You must do this in Excel and I will be reviewing all electronic submissions to confirm you
did all required formulas in Excel. Not doing this project in Excel, not submitting this
online, or not using the Excel formulas will result in no credit for this part and hence a
60% point penalty on the entire project grade.
3. On the horizontal and vertical analysis, all dollar figures should be presented exactly like the
10-K and all percentage columns should be shown as percentages with 2 decimals (i.e.
7.25%). Make sure that your all statements are formatted with dollar signs, commas,
borders, underlining, etc. and are presentable. Also make sure to note what value your
company’s dollar values are in, for instance thousands or millions.
4. On the ratios, dollar figures should be rounded to the nearest dollar or cents depending on
ratio, coverage and turnover ratios should be presented to 2 decimals (i.e. 1.12 times or 1.12
to 1), and percentage ratios should be shown as percentages with 2 decimal (i.e. 7.25%).
Make sure that all ratios are formatted correctly and are presentable.
5. The write-ups must also be portrait style and must be double spaced in 12-point font.
6. You must submit your Excel submission and your Word submission to WebCampus and
check your plagiarism score. Both are due before the due date and time online in addition to
being turned in in class.
7. Spelling and grammar count. Remember you are presenting to upper management and the
report should be written with that in mind. Run spell check in both Excel and Word. It is
suggested you see the Writing Center if your writing skills are lacking. Points will be
deducted for papers that are hard to read and if they are too hard to read it will be a “0”.
8. You must submit each part of the project and you must present your work as follows in order
to receive credit:
Individual Excel Analyses and Ratios
a) Cover Page with your name and the name of your company
b) Income Statement horizontal analysis
c) Income Statement vertical analysis
d) Balance Sheet horizontal analysis
e) Balance Sheet vertical analysis
f) Ratio calculations
Group Write-ups
a) Cover Page with all students’ names listed, the name of your company
b) Income Statement write-up
c) Balance Sheet write-up
9. This should be presented as a “unified” group project. This means that all sheets must be in
the same font, format, etc. Do not just copy and paste each group member’s part into the
document and submit without making sure it is consistent in format, tone, wording, etc.
Remember this is a group project so you should not use “I” and instead use “we”.
10. The grading rubric below should be carefully reviewed and followed.
11. The write-up should be no longer than ¼ page for each account and really only needs to be 23 sentences to address the questions sufficiently. Here is an example of a write-up that
would get full credit.
As management in Boyd Gaming, we choose to look into Accounts Receivable, net. We
choose this account because it decreased $38.33 million and 58.5% from 2013 to 2014. This
account also decreased from 1.1% of total assets in 2013 to 0.6% of total assets in 2014.
This account decreased mainly due to the allowance for doubtful accounts, which lowers the
amount of accounts receivable, decreasing $19.8 million due to the company deconsolidating
Borgata in Atlantic City on September 30, 2014, which caused Boyd Gaming to no longer
record those assets, liabilities, and non-controlling interests in the property (Pg. 65). This
one decrease accounts for over half the change, 51.7%.
You will notice both the vertical and horizontal reasons were given for selecting the account.
That is not required. You can select based only on 1 of those (or the ratio calculations) if you
want, but I wanted to give you both scenarios so you can see how they should be written.
Grading Rubric
This is a high level guide to make sure the project is completed and follows all the requirements.
This has been added since I have found that most points off are because students do not read all
the instructions and make up their own “rules”. This is just a guide so you don’t miss any
minimum requirements.
These items are points that come right off the starting score of 100%:
Unprofessional work
No Cover page missing any required information
Not Turning in on time including turning in on WebCampus (late at 1
min after class starts)
Project in not in required order as listed in #9 of Requirements
Project sis not tapled (binders and paperclips not allowed)
10-K statements not included (any missing is total points off)
Errors in formatting, grammar, spelling, etc. (dollar signs, spelling,
presentable, borders, consistency, etc.)
Spelling and grammar issues, after first 2
These are the maximum points for each required part:
Points off if not
-15 and required to
fix within 24 hours
Up to -10
-10 per 24 hours
Up to -20
-1 point each error
Horizontal and Vertical analysis for each statement –
10 points each
Subtotal or totals must be formulas
– 2 points off for each that are hardcoded numbers even if the horizontal
and vertical analyses are done correctly
Horizontal or vertical formula are correct – 5 points off each wrong one
Points off if not
Ratio Calculations – 2 points each calculation (1 each year)
Write Up – 4 points per account
Why you selected this account – 2 points
What caused the change – 2 points
Choosing a subtotal instead of an account will have the full points taken
off even if you answered all questions
10-K 1 lvs-20181231x10k.htm 10-K
Table of Contents
Washington, D.C. 20549
Form 10-K
ACT OF 1934
For the fiscal year ended December 31, 2018

OF 1934
For the transition period from
Commission file number 001-32373
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of
incorporation or organization)
(IRS Employer
Identification No.)
3355 Las Vegas Boulevard South
Las Vegas, Nevada
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code:
(702) 414-1000
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Name of Each Exchange on Which Registered
Common Stock ($0.001 par value)
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes ! No ”
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. Yes ” No !
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required
to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ! No ”
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be
submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit such files). Yes ! No ”
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this
chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. !
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,
smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated
filer,” “smaller reporting company,” and “emerg …
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