Financial Statement Analysis

FINANCIAL STATEMENT ANALYSIS DANNY S. LITT INTRODUC TION The figures from the fiscal narrations by themselves have discourteous signifi trampce by themselves. The kinship on one consequent to another, the amount and the direction of the change can prove to be informative. M e t hods of F i n a n c i a l A n a l ysis : C om p a r a t i v e a n a l ysis The entry of coitus monetary educations affords an analyst the probability to determine styluss and analyze the keep an entity has made all over a specified detail of time. The periodical fiscal statement presentation in a material annual report unremarkably includes detailed comparative financial statements for the current and preceding yr along with a 5 or 10-year summary of apposite financial entropy. T r e n d p e r c e n t a ges Sales Accounts Receivable ar.

2012 $650,000 70,000 2011 $600,000 52,000 2010 $550,000 44,000 2009 $500,000 40,000 2011 coarse hundred% cxxx% 2010 one hundred ten% 110% 2009 snow% 100% This data in trend percentage form would be: 2012 130% 175% Sales Accounts Receivable D o l l a r a n d p e r c e n t a ge a n a l y s i s P e r c e n t age a n a l ysi s consists of reducing link amounts to a series of percentages of a disposed(p) instal. H o r i zon t a l a n a l ysi s indicates the proportionate change in financial statement items over a period of time and is recyclable in evaluating trends. V e r t i c a l a n a l ysi s (common-size analysis) is the thoughtfulness of each item on a financial statement in a given period to a base figure and is helpful in sight trends and in making intercompany comparisons of polar sized companies. A balance deal sheet and income statement can be converted into common-size statements by dividing the balance sheet items by total assets and income statement items by net sales. H O R I Z O N T A L A N A L Y SIS St a t e m e n t of F i n a n c i a l Posi t ion D e c e m b e r 31, 2012 a n d 2011 ( D o l l a r s i...If you want to get a full essay, guild it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper