Ratio analysis and vertical analysis, Financial Accounting

Assignment Help:

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.


Related Discussions:- Ratio analysis and vertical analysis

Find the expected time a person will spend, A new shopping mall is consider...

A new shopping mall is considering setting up an information desk staffed by one (1) employee. Based upon information obtained from similar information desks, it is believed that p

Advise the directors of the entity, An entity had the following transaction...

An entity had the following transactions during the year ended 31 December 2010: The entity invested in a convertible bond on its issue date. The bond matures four years aft

Retained earnings for plant expansion, Foley Corporation has the following ...

Foley Corporation has the following capital structure at the beginning of the year: 6% Preferred stock, $50 par value, 20,000 shares authorized, 6,000 shares issued and outstanding

Generally accepted accounting principles (gaap), Generally Accepted Account...

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as tehy prepare and issue financial statements. Let's start by getting an understanding of wh

Analyse daily prices-returns and volatility, Choose a share from a market s...

Choose a share from a market such as LSE, NYSE, NASDAQ, etc. [Data sources could be Datastream, Google Finance or others]. Prepare a report which involves the following aspects: -

Differences in inter company balances-group accounts, Differences in Inter ...

Differences in Inter company balances i) Cash in transit Where one company may have sent cash which is yet to be received by the other company as at the end of the financia

Looking for income statement and balance sheet, Looking for Income Statemen...

Looking for Income Statement and Balance Sheet for the Better USA, Inc. company for 2010 and 2011 Facts: Sales 11,573 (2010) and 12,936 (2011) - Depreciation 1,661 and 1,736 - Cost

Corporate accounting system, 1. This assignment is to be submitted as an in...

1. This assignment is to be submitted as an individual assignment.  2. Marks will be deducted for poor quality presentation. For guidance on the requirements for the presentatio

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd