Ratio

FINANCIAL STATEMENT ANALYSIS DANNY S. LITT INTRODUCTION The figures from the fiscal fiscal directions by themselves have modest significance by themselves. The kind on one identification number to another, the amount and the direction of the change can prove to be informative. Methods of fiscal compend: ? Comparative analysis The presentation of comparative pecuniary dictations affords an psychoanalyst the opportunity to determine trends and analyze the proceed an entity has made everyplace a specified period of time. The yearbook pecuniary statement presentation in a embodied annual subject area normally includes detailed comparative financial statements for the current and front year along with a 5or 10-year compact of pertinent financial information. 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 function 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 harmonious 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 ratio tag end and incom! e statement can be converted into common-size statements by dividing the balance sheet items by total assets and income statement items by terminate sales. HORIZONTAL ANALYSIS Statement of Financial Position celestial latitude 31, 2012 and 2011 (Dollars in thousands) 2012 2011 Current assets: Cash and vendible securities Accounts receivable, net descent Prepaid expenses Total current assets...If you extremity to get a full essay, order it on our website: OrderCustomPaper.com

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