Ratio analysis and vertical analysis, Financial Accounting

Balance Sheets: contains the balance sheets as of December 31, 2010, 2009, and 2008. Accounting practice and tradition dictates that the most current year is placed nearest to the labels.

Income Statements:  contains the income statements and the statements of retained earnings for the years ended December 31, 2010, 2009, and 2008. Again accounting practice and tradition dictates that the most current year is placed nearest to the labels.

Cash Flows: contains the statements of cash flows for the years ended December 31, 2010, and 2009. Again accounting practice and tradition dictates that the most current year is placed nearest to the labels.

Ratios: contains a list of the ratios you need to calculate for years 2010 and 2009 only.

Vertical Analysis

Perform vertical analysis on the balance sheets and income statements for the three years presented. The vertical analysis should be performed on the same worksheet that the financial data appears on.

Ratio Analysis

Calculate the required ratios on the Ratios worksheet for the two years 2010 and 2009 only. The ratios should be calculated on that sheet. Hint: You may want to capture the needed information from the other worksheets onto the Ratios page first; think about what amounts are required from each statement and then capture those in an organized manner. Once all the needed info is in place, you can calculate the required amounts without leaving the Ratios worksheet; it's just a suggestion. 

Commentary

Is there anything that catches your attention as a result of the calculations you have performed?  Is some measure significantly improving or deteriorating.  Are there accounts or line items that you would specifically like to discuss with the management of Demonstration Corporation because they seem to indicate a current or pending problem for the company? Submit your thoughts and comments in a separate Word document.

Posted Date: 2/25/2013 2:47:27 AM | Location : United States







Related Discussions:- Ratio analysis and vertical analysis, Assignment Help, Ask Question on Ratio analysis and vertical analysis, Get Answer, Expert's Help, Ratio analysis and vertical analysis Discussions

Write discussion on Ratio analysis and vertical analysis
Your posts are moderated
Related Questions
Q. Estimation of current cost of debt? The debenture will be used to estimation the current cost of debt as it is the only marketable debt. The present market value of the debe

Star corporation issued both common and predered stock during 20X6. The stockholders' equity section of the company's balance sheets at the end of 20X6 and 20X5 follow: 20X6 20X5 P

Suppose that the risk-free rate is 7% and that the market risk premium is 7%. What is the needed rate of return on a stock with a beta of 1.2? What is the needed rate of retu

under gaap, are proceeds from capital lease obligation reported in the statement of cash flow and why

Profit is not cash flow: Adequate cash is essential to keep business running. Inadequate cash increases the risk of not being able to meet current obligations as and when the

Q. Explain bonus or capitalisation issues? A rights issue is a approach of raising finance via the issue of shares to existing equity shareholders. Consecutively to make such a

a) The actual risk-free rate is 3%, and inflation is usual to be 2% for the next 2 years. A 2-year Treasury security yields 6.7%. What is the maturity risk premium for the 2-year s

1. Suppose that the one-period rate is 4% and that the two-period rate is 6%. What sort of expectation for the one-period rate next period makes this situation an equilibrium? 2

Your firm has been hired to examine the financial statements of Bonanza Development Corp. for possible irregularities.  As part of this task, you reviewed certain land transactions

Payments needed? Zach Taylor is settling a $27,000 loan due today by making 6 equal annual payments of $6018.83. What payments must Zach Taylor make to settle the loan at the inter