Vertical Analysis Checkpoint
Feedback is at the end of the paper.
The three of financial statement analysis are horizontal analysis, vertical analysis, and ratio analysis. The function of all three analyses is to evaluate the significance of financial statements data. Horizontal analysis function is to evaluate and compare data given by the financial statement for at least two years with in its own company. Vertical analysis expresses the amounts of the financial statements as a percentage from the amounts given on the financial statements. Vertical analysis also makes it so that companies can compare how they are doing with competing companies. Ratio analysis is used to evaluate liquidity, profitability, and solvency.
PepsiCo. Calculations:
Ratio:
2005 Current …show more content…
Ratio: 1.11:1 10,454/9,406=1.1114
2004 Current Ratio: 1.28:1 8,639/6,752=1.2794
Vertical Analysis:
2005 current assets 10,454 / total assets 31,727=0.3294 or 32.9%
2004 current assets 8,639 / total assets 27,987=.3086 or 30.7%
Horizontal Analysis:
Assets increased in 2005 by 13%
Total assets 2005 31,727-total assets 2004 27,987=3740/ 27,987=.133 or 13%
Liabilities increased by 21%
Total liability 2005 17,476-total liability 2004 14,464=3012/14,464=.208 or 21%
Coca-Cola Calculations:
Ratios:
Current Ratio for 2005 1.04:1 10,250/9,836=1.042
Current Ratio for 2004 1.10:1 12,281/11,133=1.103
Vertical Analysis:
2005 Current Assets 10,250/total assets 29,427=.348 or 35%
2004 current assets 12,281/total assets 31,441=.390 or 39%
Horizontal Analysis:
Current assets decreased by 17%
Current assets in 2005 10,250-current assets 2004 12,281=-2031/current assets 2004 12,281=-.165 or -17%
Current liability decreased by 12% in 2005
Current liability in 2005 9,836- current liability in 2004 11,133=-1297/current liability in 2004 11,133=-.116 or 12%
Good Effort on the CheckPoint See more feedback below.
| | CheckPoint 25/points | Points Earned 21.5/25 | | Write in 100 to 200 words an explanation of the three tools of financial statement analysis and the function of each. | 5/5 points | | three tools of financial statement analysis | | 3 | The tone is appropriate to the content and assignment. Sentences are complete, clear, and concise. Sentences are well constructed, with consistently strong, varied sentences. Sentence transitions are present and maintain the flow of thought. Rules of grammar, usage, and punctuation are followed. Spelling is correct. | | 1 | The paper is 100 to 200 words in length. | | 1 | Feedback Concept seems to be learned. | Additional Comments: | | Calculate the following for PepsiCo, Inc. and show your work and Calculate the following for Coca-Cola and show your work: | 19/20 points | | Ratio analysis | | | Tool: Current ratio for 2005 | | | Pepsico | | 1 | Coca-Cola | | 1 | Tool: Current ratio for 2004 | | | Pepsico | | 1 | Coca-Cola | | 1
| | | | Vertical analysis | | | Tool: Current assets ÷ total assets in 2005 | | | Pepsico | | 2 | Coca-Cola | | 2 | Tool: Current assets ÷ total assets in 2004 | | | Pepsico | $8,639 ÷ $27,987 = 30.9% | 2 | Coca-Cola | $12,281 ÷ $31,441 = 39.1% | 2 | | | | Horizontal analysis | | | Tool :Percent change in total assets (2005 ÷ 2004) | | | Pepsico | | 2 | Tool :Percent change in current assets (2005 ÷ 2004) | ($10250-12281) ÷ $12281 = -16.5 % | | Coca-Cola | ($29,427 - $31,441) ÷ $31,441 = -6.4% | 1.5 | Tool: Percent change in total liabilities (2005 ÷ 2004) | | | Pepsico | | 2 | Tool: Percent change in current liabilities (2005 ÷ 2004) | ($9836 - $11133) ÷ $11133 = -11.65% | | Coca-Cola | ($13,072 - $15,506) ÷ $15,506 = -16% | 1.5 | | | | | | | Feedback: All figures looked good but you did the horizontal analysis on the Pepsico for the Total assest and did the current assets for Coca-Cola. You need to compare the same numbers in the companies to be able to complete a correct analysis. | Additional Comments: | | Late One Day 25 *.10 | | -2.5 | Total 25/Points | Points Earned 21.5/25 | | | | 21.5 | Overall Comments: Late assignments receive a 10% deduction for each day they are late. Assignments are late if they are not posted by midnight Arizona time (MST) of the day they are due. Assignments that are more than 4 days late will not be accepted unless we have negotiated and mutually agreed upon an alternative submission date in advance. Unless an Incomplete grade has been granted, student assignments submitted after the last day of class will not be accepted. | | | | | | | |
The three of financial statement analysis are horizontal analysis, vertical analysis, and ratio analysis. The function of all three analyses is to evaluate the significance of financial statements data. Horizontal analysis function is to evaluate and compare data given by the financial statement for at least two years with in its own company. Vertical analysis expresses the amounts of the financial statements as a percentage from the amounts given on the financial statements. Vertical analysis also makes it so that companies can compare how they are doing with competing companies. Ratio analysis is used to evaluate liquidity, profitability, and solvency.
PepsiCo. Calculations:
Ratio:
2005 Current …show more content…
Ratio: 1.11:1 10,454/9,406=1.1114
2004 Current Ratio: 1.28:1 8,639/6,752=1.2794
Vertical Analysis:
2005 current assets 10,454 / total assets 31,727=0.3294 or 32.9%
2004 current assets 8,639 / total assets 27,987=.3086 or 30.7%
Horizontal Analysis:
Assets increased in 2005 by 13%
Total assets 2005 31,727-total assets 2004 27,987=3740/ 27,987=.133 or 13%
Liabilities increased by 21%
Total liability 2005 17,476-total liability 2004 14,464=3012/14,464=.208 or 21%
Coca-Cola Calculations:
Ratios:
Current Ratio for 2005 1.04:1 10,250/9,836=1.042
Current Ratio for 2004 1.10:1 12,281/11,133=1.103
Vertical Analysis:
2005 Current Assets 10,250/total assets 29,427=.348 or 35%
2004 current assets 12,281/total assets 31,441=.390 or 39%
Horizontal Analysis:
Current assets decreased by 17%
Current assets in 2005 10,250-current assets 2004 12,281=-2031/current assets 2004 12,281=-.165 or -17%
Current liability decreased by 12% in 2005
Current liability in 2005 9,836- current liability in 2004 11,133=-1297/current liability in 2004 11,133=-.116 or 12%
Good Effort on the CheckPoint See more feedback below.
| | CheckPoint 25/points | Points Earned 21.5/25 | | Write in 100 to 200 words an explanation of the three tools of financial statement analysis and the function of each. | 5/5 points | | three tools of financial statement analysis | | 3 | The tone is appropriate to the content and assignment. Sentences are complete, clear, and concise. Sentences are well constructed, with consistently strong, varied sentences. Sentence transitions are present and maintain the flow of thought. Rules of grammar, usage, and punctuation are followed. Spelling is correct. | | 1 | The paper is 100 to 200 words in length. | | 1 | Feedback Concept seems to be learned. | Additional Comments: | | Calculate the following for PepsiCo, Inc. and show your work and Calculate the following for Coca-Cola and show your work: | 19/20 points | | Ratio analysis | | | Tool: Current ratio for 2005 | | | Pepsico | | 1 | Coca-Cola | | 1 | Tool: Current ratio for 2004 | | | Pepsico | | 1 | Coca-Cola | | 1
| | | | Vertical analysis | | | Tool: Current assets ÷ total assets in 2005 | | | Pepsico | | 2 | Coca-Cola | | 2 | Tool: Current assets ÷ total assets in 2004 | | | Pepsico | $8,639 ÷ $27,987 = 30.9% | 2 | Coca-Cola | $12,281 ÷ $31,441 = 39.1% | 2 | | | | Horizontal analysis | | | Tool :Percent change in total assets (2005 ÷ 2004) | | | Pepsico | | 2 | Tool :Percent change in current assets (2005 ÷ 2004) | ($10250-12281) ÷ $12281 = -16.5 % | | Coca-Cola | ($29,427 - $31,441) ÷ $31,441 = -6.4% | 1.5 | Tool: Percent change in total liabilities (2005 ÷ 2004) | | | Pepsico | | 2 | Tool: Percent change in current liabilities (2005 ÷ 2004) | ($9836 - $11133) ÷ $11133 = -11.65% | | Coca-Cola | ($13,072 - $15,506) ÷ $15,506 = -16% | 1.5 | | | | | | | Feedback: All figures looked good but you did the horizontal analysis on the Pepsico for the Total assest and did the current assets for Coca-Cola. You need to compare the same numbers in the companies to be able to complete a correct analysis. | Additional Comments: | | Late One Day 25 *.10 | | -2.5 | Total 25/Points | Points Earned 21.5/25 | | | | 21.5 | Overall Comments: Late assignments receive a 10% deduction for each day they are late. Assignments are late if they are not posted by midnight Arizona time (MST) of the day they are due. Assignments that are more than 4 days late will not be accepted unless we have negotiated and mutually agreed upon an alternative submission date in advance. Unless an Incomplete grade has been granted, student assignments submitted after the last day of class will not be accepted. | | | | | | | |