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
The partnership of Lewis and Clark had these balances at April 30, 2008: Cash........$28,000 Liabilities........56,000 Clark Capital...14,000 Other Assets...84,000 Service Re

1.From the following information you are required to prepare a cash Flow statement of XYZ Ltd for the year ended 31 st December 2009 LIABILITIES

prepare a cash flow statement

Q. Conclusion on Overtrading? The majority of the evidence suggests that our company is moving into an overtrading situation, although the evidence is not conclusive. Current p

Effect of disclaimer The trustee may disclaim onerous property consisting of: Land burdened with onerous covenants; Stocks and shares; Unprofitable contracts, or

Principles, concepts and CONVETIONS

1) Inventory of raw material are held to make sure that the production process is not disrupted because of shortage of raw material. The amount of raw material inventory would base

Find the heading Goodwill. What type of an asset is goodwill? Does Amazon write off this asset? Explain what the company does

Consider an MBA program as a processing network where the flow unit consists of a student in the program.  Suppose the organizations that hire and promote MBAs are considered to be

Identify the various prices for job To identify the various prices for job, there are numerous points to be considered, including: ?How many garages shall we visit? ?What