Ratio

FINANCIAL STATEMENT ANALYSIS DANNY S. LITT INTRODUCTION The figures from the fiscal mo winary bursting charges by themselves have modest significance by themselves. The kindred on one identification number to another, the amount and the direction of the change can prove to be informative. Methods of fiscal outline: ? Comparative summary The presentation of comparative fiscal averments affords an psychoanalyst the opportunity to determine trends and analyze the proceed an entity has made everyplace a specified period of time. The yearbook monetary statement presentation in a embodied annual cut through normally includes detailed comparative financial statements for the current and precede year along with a 5or 10-year compact of pertinent financial data. Trend voices show several age financial data in terms of a instauration year. Sales Accounts receivable 2012 $650,000 70,000 2011 $600,000 52,000 2010 $550,000 44,000 2009 $500,000 40,000 This data in trend dower form would be: Sales Accounts Receivable 2012 cxxx% clxxv% 2011 120% 130% 2010 110% 110% 2009 cytosine% 100% ? Dollar and percentage analysis Percentage analysis consists of cut related amounts to a series of percentages of a condition base.

swimming analysis indicates the proportionate change in financial statement items over a period of time and is useful in evaluating trends. Vertical analysis (common-size analysis) is the expression of each item on a financial statement in a given period to a base figure and is helpful in detecting trends and in making intercompany comparisons of different sized companies. A offset tag end and inco! me statement can be converted into common-size statements by dividing the balance sheet items by total assets and income statement items by net sales. HORIZONTAL ANALYSIS Statement of Financial Position declination 31, 2012 and 2011 (Dollars in thousands) 2012 2011 Current assets: Cash and vendible securities Accounts receivable, net lineage Prepaid expenses Total current assets...If you extremity to get a full essay, order it on our website: OrderCustomPaper.com

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