COMMON-SIZE FINANCIAL STATEMENT ANALYSIS When all the items of a financial statement are expressed on a common basis‚ it is known as a common-size financial statement. Common-sizing of balance sheet is done generally by expressing its all items as a percentage of its total assets or total equities. Similarly‚ income statement is common-sized when its all items are expressed as percentage of total sales. PROCEDURE OF COMMON SIZING In preparing common-size income statement‚ the following procedure
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Appendix A 2011 Financial Report Financial Review Pfizer Inc. and Subsidiary Companies INTRODUCTION Our Financial Review is provided to assist readers in understanding the results of operations‚ financial condition and cash flows of Pfizer Inc. (the Company). It should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements. The discussion in this Financial Review contains forward-looking statements that involve substantial risks and
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The Consolidated Statements of Earnings or the income statement tells financial statement users that there was a decrease in gross profit and net sales for the fiscal year 2008. The Consolidated Statements of Earnings show that the closing of underperforming stores‚ removal of new store openings from the pipeline‚ and staff reductions in many Home Depot projects resulted in $951 million in pretax charges. The difference profit and net sales is also a cause of fiscal year 2008 being 52 weeks and
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Chapter 3 Analysis of Financial Statements SOLUTIONS TO END-OF-CHAPTER PROBLEMS 3-1 DSO = 40 days; S = $7‚300‚000; AR = ? DSO = 40 = 40 = AR/$20‚000 AR = $800‚000. 3-2 A/E = 2.4; D/A = ? 3-3 ROA = 10%; PM = 2%; ROE = 15%; S/TA = ?; TA/E = ? ROA = NI/A; PM = NI/S; ROE = NI/E. ROA = PM S/TA NI/A = NI/S S/TA 10% = 2% S/TA S/TA = 5. ROE = PM S/TA TA/E NI/E = NI/S S/TA TA/E 15% = 2% 5 TA/E 15% = 10% TA/E TA/E = 1.5.
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preparing common-size statements‚ items on the Balance Sheet are generally stated as a percentage of __________ and items on the Income Statement are generally stated as a percentage of __________. total assets; net income. total shareholders’ equity; net income. total shareholders’ equity; net sales. total assets; net sales. Common-size balance sheets express all assets‚ liabilities‚ and equities as a percent of the balance sheet footing (total assets). Common-size income statements express all sales
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Financial Statement Restatement Paper Pasha BicepsACC/537 October 3‚ 2014 Professor GofterFinancial Statement Restatement Paper Every so often companies may have to restate their financial statements to reflect changes made to the accounting in years past. Whether it be due to changes in accounting types‚ the changes in reporting of certain items‚ or egregious errors made by those in the accounting departments‚ it is sometimes necessary for a company to go back and restate its financial statements
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Medtronic ’s Ratings Earning Power I would rank Medtronic ’s earning power at a 9 on a scale of 1 (very weak) to 10 (very strong). Medtronic has successfully demonstrated their ability to grow and provide substantial return to their owners. Medtronic ’s net earnings have steadily increased from $984.0 million in 2002‚ to $1599.8 million in 2003‚ to $1959.3 million in 2004. Their total assets have increased 13.7% from $12‚405.5 million in 2003 to $14‚110.8 million in 2004. These measures show
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Education Volume 6‚ 2009‚ 83-96 A FINANCIAL STATEMENT ANALYSIS PROJECT FOR INTRODUCTORY FINANCIAL ACCOUNTING Marilyn B. Misch Business Administration Division Pepperdine University Malibu‚ California USA Carolyn A. Galantine Business Administration Division Pepperdine University Malibu‚ California USA ABSTRACT This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project requires students
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trying to steer them in a separate direction could prove to be difficult. In regards to a fast-casual‚ low cost establishment‚ that is the leading rector in the restaurant industry and could prove to be slightly more attractive (Langkos‚ 2015). Chipotle Chipotle competes in the fast dining industry‚ which did not exist when it first started more than 20 years ago. Now the company has over
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------------------------------------------------- BBA 4201: Financial Statement Analysis & Control 1. Describe some of the analytical uses to which financial statement analysis can be put. 2. What are the sources of financial information? 3. Who are the users of financial statements? 4. What are the objectives of financial statements? 5. What are the limitations of financial statement analysis? 6. Discuss the need for comparative analysis. 7. Identify the tools of financial statement analysis. 8. Explain
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