Unit 2 Discussion
Must be completed in Microsoft Excel
In 2015, PayPal was spun off from eBay and provides electronic payment solutions for both consumers and merchants and maintains a focus on online transactions. For this assignment, you will utilize the attached PayPal Financials MS Excel file to create the major financial ratios. There are four sheets in the PayPal Financials MS Excel file; ratios, income statement, balance sheet, and cash flow. Using this file you will calculate and report the ratio data for PayPal for 2013 – 2015 and input the data on the first sheet (Ratios).
Directions
Place your ratio calculations in the PayPal Financial MS Excel on the Ratios sheet for 2013 -2015.
Provide the formula used to calculate each ratio in the column to the right of your calculations. For example, for calculating the Gross Margin for a company, you would enter Gross Profit / Sales (gross profit divided by sales).
When calculating values, you should use the SUM function in MS Excel and reference the values directly from the accounting statements provided. You will find an example for the expectations for calculations and the formulas in the attached file with Gross Margin calculated for 2013 – 2015.