SlideShare a Scribd company logo
1 of 84
Download to read offline
International Financial Statement Analysis Workbook
INTERNATIONAL FINANCIAL STATEMENT ANALYSIS WORKBOOK
INTERNATIONAL FINANCIAL STATEMENT ANALYSIS WORKBOOK CFA Institute is
the premier association for investment professionals around the world, with over 95,000 members in
134 countries. Since 1963 the organization has developed and administered the renowned Chartered
Financial Analyst® Program. With a rich history of leading the investment profession, CFA Institute
has set the highest standards in ethics, education, and professional excellence within the global
investment community, and is the foremost authority on investment profession conduct and practice.
Each book in the CFA Institute Investment Series is geared toward industry practitioners, along with
graduate–level finance ... Show more content on Helpwriting.net ...
tcomes Summary Overview Problems Contents 33 33 34 35 CHAPTER 7 Financial Analysis
Techniques Learning Outcomes Summary Overview Problems 41 41 42 43 CHAPTER 8
International Standards Convergence Learning Outcomes Summary Overview Problems 49 49 50 51
CHAPTER 9 Financial Statement Analysis: Applications Learning Outcomes Summary Overview
Problems 55 55 56 56 CHAPTER 10 Inventories Learning Outcomes Summary Overview Problems
59 59 60 61 CHAPTER 11 Long–Lived Assets Learning Outcomes Summary Overview Problems
65 65 66 67 CHAPTER 12 Income Taxes Learning Outcomes Summary Overview Problems 71 71
72 73 Contents vii CHAPTER 13 Long–Term Liabilities And Leases Learning Outcomes
Summary Overview Problems 79 79 80 81 CHAPTER 14 Employee Compensation: Postretirement
And Share–Based Learning Outcomes Summary Overview Problems 85 85 86 87 CHAPTER 15
Intercorporate Investments Learning Outcomes Summary Overview Problems 95 95 95 97
CHAPTER 16 Multinational Operations Learning Outcomes Summary Overview Problems 105 105
105 107 CHAPTER 17 Evaluating Financial Reporting Quality Learning Outcomes Summary
Overview Problems 115 115 116 117 PART II Solutions CHAPTER 1 Financial Statement Analysis:
An Introduction Solutions 121 123 123 CHAPTER 2 Financial Reporting Mechanics Solutions 125
125 viii CHAPTER 3 Financial Reporting Standards Solutions Contents 129
... Get more on HelpWriting.net ...
Financial Statement Analysis And Financial Statements
The ultimate goal of accounting is to provide useful information to those that need it (Siam, &
Rashid, 2010). Financial statements analysis is very important to various users because it helps to
express the overall financial health of the organization (Gibson, 2013). Managers use the financial
statements to measure the profitability of a company, manage day to day activities and make
important decisions about pricing, production that will benefit the organization (Gibson, 2013).
Financial statements are also used to form contracts between organizations. Using the debt to equity
ratio, managers are able to determine how much capital should be raised for investment. Consumers
on the other hand need the financial statements to tell them the ability of the company to meet their
needs. This study presents a comprehensive assessment of the balance sheet components, income
statement components and the fair value accounting system.
Balance Sheet
Balance sheets provides the snapshot of the overall financial position of an organization at a specific
time especially the end of an accounting period (Haydon, & Wicks, 1966). It shows the assets
owned, liabilities and the shareholder's equity. The balance sheet details can vary greatly based on
the business size and complexity, however in general the balance sheet adheres to the following
principle: The left side of the balance sheet must always equal to the right side (Orens, & Lybaert,
2010).
ASSETS = LIABILITIES – SHAREHOLDER'S EQUITY
... Get more on HelpWriting.net ...
Analysis of Microsoft Financial Statements
Analysis of Financial Statements
Financial statements are frequently a key source of information for financial decisions and taking a
look at Microsoft's financial statements can help us decide certain things about the company. There
are three different types of statements that will be discussed in this section. These include: the
balance sheet, the income statement, and the statement of cash flows. They are discussed here in
either the sense of quarterly or yearly statements and will be noted as so. All information has been
derived from Yahoo Finance. (http://finance.yahoo.com) The first statement that will be analyzed for
Microsoft is the balance sheet. The balance sheet is essentially a snapshot of what the firm owns ...
Show more content on Helpwriting.net ...
The final section of the statement of cash flows is the financing section, which shows the dividends
paid, the purchases of stock, the net borrowings, and other possible cash flows from financing
activities. A positive trend for investors is the fact that dividends paid has increased (even though it
is negative to the firm) as well as sale purchase of stock, from 2009 to 2011 and even increased
quarterly in 2011. The net borrowings is off an on from 2009 to 2011 possibly because of certain
funds needed in particular years. In 2009, it was $5,746,000,000 and in 2010, it was $190,000,000.
It shot back up again in 2011, with $5,960,000,000. The three statements that were provided in this
section provide possible investors, competitors, and even those within the company with useful
information to make important decisions that could affect their livelihood or the livelihood of
Microsoft. Keep in mind that even though financial statements are a solid indicator of how a
company is performing, one key principle about must be known when viewing them to make
decisions. They do not always provide all of the information that you may need. There are usually
underlying topics that could affect the company that are not necessarily showing up on their
financial statements. These topics are discussed in other sections of this report on Microsoft.
We feel it important to compare Microsoft's ratios not only to other companies and industry norms,
... Get more on HelpWriting.net ...
Financial Statement Analysis : Google Inc.
Google Inc. Year 2012 Financial Statement Analysis
Name
Professor
Institution
Course
Date
GOOGLE INC. FINANCIAL STATEMENT ANALYSIS
Introduction
Investment has been a key factor in business world. People search for the best performing industries
and identify the most profitable company, which they then invest their money. Although one can
judge the company's investment worth through profits, analysis of the entire financial statement is
critical for a good decision–making. In the current business industry, financial statements have
become critical in understanding the financial performance of a business in order to make proper
investment decisions. In addition, the financial statements are important in providing information to
... Show more content on Helpwriting.net ...
The employees use the financial
GOOGLE INC. FINANCIAL STATEMENT ANALYSIS rations to assess the profitability and
stability of the company for them to have job assurances and pay rise.
In this paper, the financial statement for Google Inc. as year ended 2012 will be used for analysis
where different ratios will be evaluated and calculated. The analysis will include Horizontal
Analysis on income, Horizontal Analysis of the Balance Sheet, Trend Analysis on Net Sales, Income
from Continuing Operations, Net Income Vertical Analysis, Income statement Vertical Analysis,
Balance Sheet Ratio Analysis: Working Capital, Current Ratio, Cash Ratio, Acid–Test (Quick)
Ratio, Inventory Turnover, Days' Sales in Inventory, Gross Profit Percentage, Accounts Receivable
Turnover, Days' Sales in Receivables, Debt Ratio, Debt to Equity Ratio, Times–Interest–Earned
Ratio, Profit Margin Ratio, Rate of Return on Total Assets, Asset Turnover Ratio, Rate of Return on
Common Stockholders' Equity, Earnings per Share Price, Earnings (P/E) Ratio, Dividend Yield,
Dividend Payout, and uses of charts and graphs for the discussion of the results (Warren, Reeve, J&
Duchac, 2009). The importance and the implications of the ratios to the Google Inc Company will
be discussed and the investment potential determined.
Brief background of Google Company
Google Company is one of the
... Get more on HelpWriting.net ...
Financial Statement Analysis : Business Model Of The Neo...
INTRODUCTION
Financial statement analysis is an evaluative method of determine the past, current and projected
performance of a company. It is helps to understand the risk and profitability of a company by
analyzing annual and quarterly reports.
When we observe the financial statements comprising the balance sheet and profit and loss account
is that they fail to reveal all the information related to financial operation of an organization. It will
provide a summarized view of the organization. Therefore in order to critically examine profitability
and constitution of the assets and liabilities it is necessary to carry out comparison of financial
statements with the help of ratio analysis.
⦁ IMPORTANCE OF THE STUDY
⦁ The management of the company is responsible for taking decisions and formulating plans and
policies for the future.
⦁ It is important to company because they can obtain useful information for their investment
decision making purpose.
⦁ It is helps to extension of credits.
⦁ RESEARCH OBJECTIVES:
⦁ To understand the business model of the neo valves.
⦁ To understand company performance, through ratio analysis, balance sheet & income statement
analysis.
⦁ To know the revenue and expenditure of the company.
⦁ ASSUMPTION AND LIMITATION:
⦁ As far as academic purpose is concern the time period falls too short to analyze and understand the
complete details of the company's financial statements and analysis.
⦁ It is time consuming process.
⦁ Majority of the time
... Get more on HelpWriting.net ...
Financial Statement Analysis : Financial Analysis
Woolworth Financial Analysis
Financial statement analysis assists a business entity, business shareholders and other people
interested, to analyze the figures in financial statements to present them with superior information
about such most important factors for decision making and ultimate business survival. As
exemplified by Gibson (2001), income statement, balance sheet, and cash flow statements project
the financial performance a company at the present and probably the future. According to the annual
report 2014, Woolworth's revenue is projected to rise by 4.09% annually. The group's financial
performance for the past four years is shown below.
Table 1: Woolworths Limited
Year Revenue AUD in millions Growth %
2010–11 54280
2011–12 55441 2.14
2012–13 58674 5.83
2013–14 60952 3.88
Average growth rate 3.95
The above table demonstrates a general idea of Woolworth's revenue and growth all over a three–
year period. It is equally important to recognize the financial position and operational results in
which were the follow–on behind Woolworths's steady growth. As a result, to identify these factors,
the following ratios are used to evaluate Woolworths' financial position and results of operations.
 Company Profitability ratio
 Liquidity ratio
 Activity ratio
 Financial Leverage Ratios
1. Company Profitability ratio
As exemplified by Baker & Powell (2005), profitability ratio assesses how successful a corporation
has been in meeting its general revenue goals,
... Get more on HelpWriting.net ...
A Financial Statement Analysis Project for Introductory...
G lobal Perspectives on Accounting 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
USAABSTRACT This paper describes a financial statement analysis project useful in both
preparerbased and user–based introductory courses in financial accounting. The project requires
students to analyze trends in corporate performance, to evaluate corporate financial decisions, to
discuss non–financial statement issues that would be important to potential investors, to compare
two companies within an industry, ... Show more content on Helpwriting.net ...
As a first step, the professors organize students into groups of four to five people, balancing the
groups based on both academic major and performance in the class to date (including performance
on homework and the first exam), as well as to achieve diversity. The group format is used to
encourage students to learn from each other, to motivate students to consider alternative viewpoints,
to develop students' understanding of group dynamics, and to limit the amount of time required of
the project for both students and the faculty who must grade it. Each professor uses a different
approach in selecting the industry and companies for analysis. One professor takes industry
suggestions from the class (with the restriction that there be sufficient companies so that no more
than two groups will have to analyze the same pair of companies), writes the suggestions on the
board, and asks students to vote for their top two choices. Then, a second vote is taken from among
the top two original suggestions, with a majority vote determining the industry to be analyzed.
Finally, groups have one week to send the professor an email proposing two companies to analyze,
with first responders being given preference, so that no more than two groups analyze the same pair.
85 Misch and Galantine 86 The other professor announces group assignments near the end of a
class session, then allows groups
... Get more on HelpWriting.net ...
Financial Statement Analysis Between China Mobile and...
Financial Statement Analysis between China Mobile & China Unicom in HK stock market ➢ China
Mobile Brief description: The company: China Mobile (Stock Exchange of Hong Kong 941)
Competitor: China Unicom (Stock Exchange of Hong Kong 762) It's now estimated that China has
more mobile phone users than any other country. According to statistics provided by the Ministry of
Information Industry of the PRC, the number of mobile phone owners throughout the country
totaled 539 million in November 2007. However, this is only a 41.5% penetration of the enormous
population of 13 billion, and signals immense opportunity. Following the rapid growth of China's
per capita income, increasingly more people are finding ... Show more content on Helpwriting.net ...
Basic EPS grew 31.0% to RMB4.35. This reflected a relatively high level of profitability growth
and earnings capability. The Group sustained its robust cash flow as a result of favorable business
growth, effective cost control measures, efficient capital expenditure and economies of scale. Net
cash generated from operating activities and free cash flow reached 168,612 million and 63,473
million, respectively. Total debt to total book capitalization ratio and interest coverage multiple
remained at a sound level. This reflected China Mobile's commitment to consistently practise its
prudent management discipline has earned good market recognition. Operating revenue for 2007
reached 356,959 million, up 20.9%. Leased Lines Self–constructed and jointly–constructed lines
reached a sizeable scale through the continuous network structure optimization. The Group's leased
line expenses reflected a declining trend. While various businesses were growing at a high pace, the
leased line expenses decreased by 121 million. The Group consistently endeavored to drive long–
term, sustainable and favorable profitability growth. Margin of profit attributable to shareholders
and EBITDA margin in 2007 remained relatively high at 24.4% and 54.3%, respectively. Profit from
operations was 124,068 million and maintained a rapid and steady growth. EBITDA, profit
attributable to shareholders and
... Get more on HelpWriting.net ...
Essay Acc 561 Week 2 Financial Statement Analysis
Financial Statement Analysis NAME ACC/561 Accounting DATE University of Phoenix
PROFESSOR Introduction Samsung – International Manufacturing Company Samsung served as
the manufacturing industry and international company analyzed. Samsung has been in business for
over 70 years and manufactures products for diverse markets, including: digital media, high –tech
electronics, home appliances, information technology and telecommunication. Samsung's motto is to
"inspire the world and create the future" by leveraging three key strengths: new technology,
innovative products and creative solutions. | Samsung | Wells Fargo | AT&T | Current Ratio |
1.4101 | 1.1500 | 1.6467 | Debt to Equity Ratio | 0.6768 | 9.8100 | 0.9675 | ... Show more content on
Helpwriting.net ...
Wells Fargo shows a much higher profitability ratio than Samsung, with over 8X that of Samsung.
This is to be expected as services are typically more profitable than hardware sales which operate on
leaner margins. Wells Fargo also outperforms Samsung significantly on return on sales with over
25X better performance. This again is attributable to better margins on services than hardware.
Wells Fargo has a much stronger return on equity than Samsung with a Dupont ratio over 5X higher
than Samsung's. Samsung has a stronger financial leverage ratio than Wells Fargo with almost 20%
lower ratio for Samsung. Samsung also has a much lower total asset turnover than Wells Fargo. This
is attributable to the quick turnover of assets in the manufacturing industry compared to the slow
turnover of assets in the financial services sector. With Samsung being the only international
company evaluated, there doesn't seem to be any significant impact of IASB over FASB standards
for accounting. With the ratios used, the core components of the balance sheet and income statement
were utilized. The key elements of revenue, expenses, assets and liabilities weren't significantly
impacted by IASB over FASB standards. Wells Fargo – Domestic Services Industry Company Wells
Fargo is an international company based in United States and Canada. Wells Fargo has several
divisions and services, ranging from basic deposit accounts to complex commercial loans.
... Get more on HelpWriting.net ...
Financial Statement Analysis for Glaxosmithkline...
List of Graphs [pic] Figure 1: Analysis of Sales Revenue 2010 9 Figure 2: Analysis of Sales
Revenue 2011 10 Figure 3: Analysis of Sales Revenue 2012 10 Figure 4: Current ratio 16 Figure 5:
Acid/Test Quick Ratio 17 Figure 6: Profit margin Ratio 18 Figure 7: Asset turnover 19 Figure 8:
return on asset 19 Figure 9: Return on shareholders equity 20 Figure 10: Earning per share (EPS) 21
Figure 11: Price/Earning (P/E) ratio 22 Figure 12: Price/Equity ratio 22 Figure 13: Dividend per
share (DPS) 23 Figure 14: Debt to total asset ratio 24 Figure 15: Net assets value per share 25
Figure 16: Market price per share 27 List of Tables [pic] Table 1: Analysis of Sales Revenue 10 ...
Show more content on Helpwriting.net ...
This change of name takes place following global merger of Glaxo Wellcome and SmithKline
Beecham in December 2000. The Company has a total number of employees over 671 with an
efficient management team. A team of 181 field–force including 11 line managers covers
countrywide on average 2000 daily calls to 22,000 target doctors, while there is a strong team of
distribution personnel engaged in distributed activities to cover average 19,000 customers including
retailers and wholesalers through own distribution channel in 11 District Marketing Offices
throughout the country. In Bangladesh, GlaxoSmithKline holds the 6th positions in pharmaceutical
industry having a market share of 15.6% (as of September 2007) occupying strong hold in key
therapeutic areas like Respiratory, Anti–infectives and Vacciness. Brand names of some major
products of the company are: Ventolin Inhaler, Ceporex, Zinnat, Parapyrol, Zantac, Piriton,
Dermovate, Betnovate, Dextrose, Engerix–B etc. Mission Statement [pic] "Our mission statement
explains why we are in business. Our global quest is to improve the quality of human life by
enabling people to do more, feel better and live longer. Our mission gives us purpose. Our size gives
us opportunity. Our spirit gives us the qualities as individuals and as organization that will enable us
to turn our opportunities into achievements. Our sprit will guide us, keep us
... Get more on HelpWriting.net ...
Procter And Gamble Financial Analysis
ANALYSIS OF FINANCIAL STATEMENT OF P&G CORPORATION
IBRAHIM KALEEL GM
MBA
SRINIVAS INSTITUTE OF MANAGEMENT STUDIES
PANDESHWAR MANGALORE – 575001 EMAIL: KALEELUCHIL227@gmail.com
ANALYSIS OF FINANCIAL STATEMENT OF P&G CORPORATION
Abstract : Analysis of financial statement of a company is an important because it is useful to obtain
Information ... Show more content on Helpwriting.net ...
Secondary information is collected for this case. This case study limited only one techniques of
financial analysis that is Ratio Analysis and also taken a single company. Thus the conclusion of the
analysis carried out in a professional manner will be able to correctly describe the evaluation of the
company and to substantiate the user's decisions.
Key words : Financial Statement, Ratio Analysis, Financial status, Financial performance.
Introduction :
Procter and Gamble Co. also know as P&G, is an American multinational consumer goods
company, founded by William Procter and James Gamble. Its products include cleaning agents and
personal care products. It has in its kitty global brands such as Ariel and Tide in the Fabric care
segments and Head & Shoulder, Pantene and Rejoice is the Hair care segment. For this case study
selects P&G Company as it has an important role in the consumer segment products. As P&G was a
popular company, the financials statement shows better performance in the previous year.
Financial Statement Analysis is the process of reviewing and analyzing a company's financial
statements to make better decisions. These statement includes the Income statement, Balance sheet,
Statement of cash flows and a statement of changes in equity.
There are 4 techniques used in Ratio Analysis:
Horizontal
... Get more on HelpWriting.net ...
Analysis Of Goodwill Impairments And Their Effects On...
Analysis of Goodwill Impairments and
Their Effects on Financial Statements
The impairment–only accounting model for goodwill was initially brought to the table in 2004, to
replace the previous amortization–based model. Over the years, research supported the idea that
impairment charges improved the fundamental economic attributes of goodwill than systematic
amortization charges. Research also revealed that such annual changes had minor information value
to users. According to KPMG (2014), this was the key reason why the US Financial Accounting
Standards Board (FASB) "replaced straight–line amortization of goodwill with this model that was
based exclusively on impairment testing" (p. 4). The FASB argued that this approach provides ...
Show more content on Helpwriting.net ...
After the value is determined, if the goodwill's fair value is less than the carrying value, the goodwill
is considered "impaired" and must be charged off. Essentially, the charge off reduces the value of
goodwill to market value, reflecting a "mark–to–market" charge.
Essentially, goodwill is the "value of an asset that is considered intangible but has a quantifiable
prudent value in a business (Boundless, 2014)." An example of goodwill could be the reputation a
firm has with its client. It is important to remember that although goodwill is technically an
intangible asset, it typically is listed separately on a business balance sheet.
Goodwill impairments under SFAS 142, has been the subject of many controversies. Opponents
worry that specific aspects of the standard "are complicated and require judgment (Boundless,
2014). " Therefore, a goodwill impairment charge has the ability to increase the uncertainty of the
analysts forecasting. Goodwill is recorded at the "time of a business combination by an acquiring
entity, and is defined as the excess of the consideration transferred plus te fair value of any non–
controlling interest in the acquire at the acquisition date over the fair values of the identifiable net
assets acquired" (FASB, 2007). Prior to the SFAS 141 and SFAS 142, APB Opinion No.17 regulated
accounting for goodwill (Chen, Krishnan,
... Get more on HelpWriting.net ...
America Online, Financial statement analysis
Financial statement analysis America Online, Inc. Case Study 1
1. Prior to 1995, why was America Online so successful in the commercial online industry relative
to its competitors CompuServe and Prodigy?
AOL offered a broad range of features including real–time talk, electronic mail, e–magazines and
newspapers, online classes, shopping, and internet access. They also had software for the internet
such as for production and distribution of original content, interactive marketing and transactions
capabilities, and networks to support the transmission of data. In other words, AOL was a platform
that connected the person with the need to internet access with the person who had the internet
content by charging membership fees. ... Show more content on Helpwriting.net ...
Considering the uncertainty in the subscription life, in order to provide more accurate report AOL
should change its accounting policy and charge the subscriber acquisition cost to the period in which
it is incurred. The company was not consistent with this point of view and actually increased the
amortization period from 12–18 months to 24 months in 1995. AOL was too confident in its market
strategy and retention ability and ignored the increased competition in the market. 5. What would be
the effect on AOL's 1994 and 1995 ending balance sheets if the company had followed the policy of
expensing subscriber acquisition outlays instead of capitalizing them? What would be the effect of
expensing subscriber acquisition costs on AOL's 1995 income statement?
If AOL expensed the subscriber acquisition outlays instead of capitalizing them, it removes these
costs from the asset section on the balance sheets, which reduces the total assets. The shareholder's
equity decreases as a result. If these costs were expensed, they would appear in the expense section
on the income statement. Therefore, increasing the expenses and reduce the net income on the
income
... Get more on HelpWriting.net ...
Financial Statement Analysis Blackmores
Introduction
Blackmores,the leader of Australian pharmaceuticals with over 80–year history, keeps focusing on
natural health care and becoming the first choice of the public. This essay will discuss the financial
condition by analyzing the annual reports of Blackmores in the period from financial year 2010 to
financial year 2012. It will be demonstrated by focusing on financial statements analysis, financial
statements comments and comparison with Mcksson.
Financial statement analysis
Goals and ethical issues
As the famous Australian pharmaceuticals, Blackmores sets its objectives as pursuing the leadership
position of Australian natural health brands and improving people's lives by delivering the world's
best natural health solutions ... Show more content on Helpwriting.net ...
Sales took the most percentage of total revenue. The revenue of sales increased gradually from $
214,934 (in thousands) in 2010 to $ 260,832 in 2012 while the figure of royalties reduced gradually
from $ 873 in 2010 to $ 681 in 2012 (in thousands). The revenue of other income increased from $
1,286 to $ 1,325 during this period and then the figure decreased dramatically to $ 533 in the
financial year 2012. In addition, in the financial year 2012, a new resource of revenue called
membership was developed with the figure of $54.
The top four expenses of Blackmores in the three years were the cost of raw materials and
consumables used, employee benefits expense, selling and marketing expenses and promotional and
other rebates. All the four expenses increased gradually in the three years. The cost of raw materials
and consumables used raise from $ 65,748 to $ 76,551 while employee benefits expense increased
from $ 48,179 to $ 54,910. The costs of selling and marketing expenses and promotional and other
rebates increased to$ 24,462 and $ 32,478 respectively from both around $ 19,000.
According to the comprehensive income statements of Blackmores, the figures of net profit margin
of the three years
... Get more on HelpWriting.net ...
Key to Financial Reporting, Financial Statement Analysis...
Chapter 1 An Overview of Financial Management and The Financial Environment ANSWERS TO
END–OF–CHAPTER QUESTIONS 1–1 a. A proprietorship, or sole proprietorship, is a business
owned by one individual. A partnership exists when two or more persons associate to conduct a
business. In contrast, a corporation is a legal entity created by a state. The corporation is separate
and distinct from its owners and managers. b. In a limited partnership, limited partners' liabilities,
investment returns and control are limited, while general partners have unlimited liability and
control. A limited liability partnership (LLP), sometimes called a limited liability company (LLC),
combines the limited liability advantage of a corporation with the tax ... Show more content on
Helpwriting.net ...
U. S. interest rates must be competitive with foreign interest rates; if the Federal Reserve attempts to
set interest rates lower than foreign rates, foreigners will sell U.S. bonds, decreasing bond prices,
resulting in higher U. S. rates. Thus, if the trade deficit is large relative to the size of the overall
economy, it may hinder the Fed's ability to combat a recession by lowering interest rates. 1–2 Sole
proprietorship, partnership, and corporation are the three principal forms of business organization.
The advantages of the first two include the ease and low cost of formation. The advantages of the
corporation include limited liability, indefinite life, ease of ownership transfer, and access to capital
markets. The disadvantages of a sole proprietorship are (1) difficulty in obtaining large sums of
capital; (2) unlimited personal liability for business debts; and (3) limited life. The disadvantages of
a partnership are (1) unlimited liability, (2) limited life, (3) difficulty of transferring ownership, and
(4) difficulty of raising large amounts of capital. The disadvantages of a corporation are (1) double
taxation of earnings and (2) requirements to file state and federal reports for registration, which are
expensive, complex and timeconsuming. A firm's fundamental, or intrinsic, value is the present
value of its free cash flows when discounted at the weighted average cost of capital. If
... Get more on HelpWriting.net ...
Financial Statement Analysis
Financial Statement Analysis
April Cruz, Litesha Forbes, Phillip Gibson, Jessica Hewlett, Lily James, Velda Justin, and Nzingha
Reel
ACC/561
September 27, 2010
Mark Tischler
Financial Statement Analysis
The accounting information of this paper provides a financial statement analysis for three distinct
companies: Mercedes Benz, a foreign manufacturer of vehicles; Macy's Inc, a retail department
store, and American Airlines, an airline company. The analysis for each company includes the quick
and current liquidity ratios, the DuPont ratio, profit margin, asset utilization, and financial leverage.
Discussions in this paper include how the differences of each industry affect presentations as they
relate to different ... Show more content on Helpwriting.net ...
The IASB sets international principles underlying the preparation of financial statements. It
represents the foundation of international accounting (IASB, 2010). The FASB is a private board
that sets the standards for the United States. The FASB makes sure standards make information
accessible and understandable for the public and investors in the U.S. They define fair values and
framework for fair values in (GAAP) Generally Accepted Accounting Principles (FASB, 2010). The
two boards are working on joining to form one common set of standards that will rule
internationally. The merger is not formally completed but they are already working together to
create new rules that affect presentations across–the–board, i.e. according to The Economist (2010),
"businesses may have to start putting leases on their balance–sheets" (Business & Finance, para 1).
This is an example of an across–the–board rule that would affect any industry that leases equipment,
property, or any item, and they must record it to their liabilities column. Mercedes Benz currently
follows the standards of International Financial Reporting Standards (IFRS) because it is a foreign
owned company. These standards are more principle–based and require more judgment than
American accountants are use to in their accounting procedures. The retail industry's current IFRS
application practice is diversified (IFRS, 2010). Retailers in the industry follow IASB and FASB
guidelines that cause
... Get more on HelpWriting.net ...
The Implications Of Bank Specialization On Its Financial...
When making a financial analysis on a bank, the type of business it conducts need to be considered.
Specialization can lead a bank to operate in different practices and have a varied structure of their
balance sheet. If the structure and composition of the bank is not to be considered, financial
statement analysis will provide misleading information. This report will investigate the implications
of bank specialization on its financial statement analysis.
Specialization
Larger banks specialize in customer deposits due to the larger availability of liquidity present as a
result of economies of scale and synergy; small banks tend to specialize in customer loans. To fund
these operations, small banks have a great level of liabilities relative ... Show more content on
Helpwriting.net ...
When comparing financial analysis of varying banks this can lead to asymmetric information7.
Empirical studies show that specialization does not systematically carry across different sized banks,
however the size of a bank is an important factor.
Banks with subsidiaries tend to specialize in a unique way, the parent bank tends to specialize in
numerous areas, their subsidiaries are structured to specialize in certain fields. For instance in
Luxemburg, parent banks tend to specialize in interbank lending whilst their subsidiaries have seen
interbank activities falling and an increase in customer loans. Facts such as this need to be
considered for financial analysis.8
Size
The size of the bank has a significant impact on its financial statement. Large banks have
comparatively easy access to purchased funds and capital markets compared to small ones9. Large
banks usually use more purchased
6 Banque Centrale du Luxembourg (2011) Changes in bank specialisation, Available at:
http://www.bcl.lu/fr/publications/cahiers_etudes/67/BCLWP067.pdf (Accessed: 15th november
2015).
7 Center for Monetary and Financial Studies (2014) Comparative Advantadge and Specialisation in
Bank Landing, Available at: http://www.cemfi.es/ftp/pdf/papers/wshop/specialization_102214.pdf
(Accessed: 14th november 2015).
8 Ibid 6
9 Oliver G. Wood (1979) Analysis of bank financial statements, New York: Van Nostrand Reinhold
Co.. funds (such as fed funds and RPs)
... Get more on HelpWriting.net ...
Ratio Analysis : Analysis And Interpretation Of Financial...
Ratio analysis is used to describe the important relationship that lies between figures based on line
items in financial statements like the balance sheet, profit and loss account, and a budgetary control
organization. Ratio analysis is a technique of analysis and interpretation of financial statements. It
helps in evaluating the financial position and performance of the firm, ratio analysis also allows
firms to compare their operational or financial performance to another firm or the industry standard.
This essay will firstly discuss the purpose of financial ratios, its users and how it is applied. It will
then move on to discuss the signification and limitations of ratio analysis. Furthermore, a discussion
about the usefulness of specific ratios will be held using the 2013 annual report of easy jet. Lastly,
my own views on the issues of financial statements, specifically financial ratios will be presented.
With the help of financial statements that arise by the firm, analytical methods can be used to get
information about the course of the business and the economic state. By calculating a small number
of ratios it is possible to develop a clear picture of the position and performance of a firm (P.Atrill
and E.Mclaney 2013). Financial ratios have two main users, management and inventors.
Management uses financial ratios to analyse, control and determine the performance of their
company. This will allow companies to improve in the areas where they are weak. On the other
... Get more on HelpWriting.net ...
To What Extent Might the Cash Flow Statement Help to...
To what extent might the cash flow statement help to overcome the traditional limitations of
financial statement analysis in evaluating the past performance and predicting the future successes
or failures of business organisations?
Accounting is the major means of organizing and summarizing information about economic
activities. The information which is provided by the accounting practices through financial
statement analysis, provides help to decision makers to take decision. There are various forms of
Accounting models which is of great help example if the financial statements for an organization is
made statements like Balance Sheet, Profit and loss Account etc it helps the organization out to
makes its stand in the market ... Show more content on Helpwriting.net ...
This is a disadvantage of Ratio because it has to be depended on other figures when it is individual it
represents nothing
There are certain standard set which cannot became for organisation now this again deviates from
one another for different organisation.
Ratio is not calculated on a daily basis it is prepared as and when the income statement and balance
sheet is prepared that takes palace annually.
MODERN MEHTOD OF ANALYSING: CASH FLOW STATMENT
Cash flow is one of the most vital elements in the survival of a business to include CFs in the annual
report of the company is a recent concept. Complementing the balance sheet and income statement,
the cash flow statement (CFS), its a mandatory part of a company 's financial repot, records the
amounts of cash and equivalents entering and leaving a company. The CFS helps the investor to
understand and figure out the position of the company from where the money comes and where the
money is spent by an Survival of a business depends not only on profits but perhaps more on its
ability to pay its debts when they fall due. Shareholders might believe that if a company makes a
profit after tax , then this is the amount which it could afford to pay as a dividend. Unless the
company has sufficient cash available to stay in business and also to pay a dividend, the
shareholders ' expectations would be wrong.
It can be positive, or negative, which is obviously
... Get more on HelpWriting.net ...
Pro Forma Financial Statement Analysis
Business 2204 Personal Finance
Written Assignment #4
1. What financial tools describe in this chapter can help you make better financial decisions
In this week chapter, we were introduced to another financial tool which is the Pro forma financial
statement that provide a look the potential result of financial decision. Per AccountTools (2011,
August 5) What Are Pro forma financial statement? Retrieved from
http://www.accountingtools.com/question–and–answers/what–are–pro–forma–financial–
statements.html a pro forma financial statements are the complete set of financial reports issued by
an entity, incorporating assumption or hypothetical condition about events that may have occurred in
the past or which may occur in the future. Pro forma financial
... Get more on HelpWriting.net ...
A Financial Statement Analysis Project for Introductory...
G lobal Perspectives on Accounting 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 to analyze trends in
corporate performance, to evaluate corporate financial decisions, to discuss non–financial statement
issues that would be important to potential investors, to compare two companies ... Show more
content on Helpwriting.net ...
The project in this paper, on the other hand, is much more in keeping with the recommendations of
authors such as
Kimmel (1995), who call for using cases which do not have unique solutions and which require
students to formulate recommendations on the basis of incomplete information. The project included
here has only six requirements, which are completely detailed on a single page. Yet, while the
requirements provide a systematic framework for completion, they also are open–ended, inducing
students to create analyses tailored to the particular circumstances encountered by the specific
companies and specific industries being analyzed at a particular point in time.
T
84
A Financial Statement Analysis Project for Introductory Financial Accounting
85
PROJECT OVERVIEW
Project Requirements
As may be seen in the assignment sheet included in Appendix 1, the project requires students to
obtain annual reports for two companies in a given industry–one to serve as the "base company" and
one to serve as the "comparison company." Then, students are required to analyze key trends in the
base company's income statement and balance sheet
... Get more on HelpWriting.net ...
Financial Statement Analysis
Page – 1 of 24 Financial Statement Analysis. Abstract Financial Statements are summaries of
monetary data about an enterprise. Hence Financial Statement Analysis will help one to assess the
Viability, Stability, Profitability and Liquidity of an enterprise. In this Assignment, an attempt, to
analyze the financial performance of two companies in Textile Industry (S.Kumar Nationwide Ltd.
& Gokaldas Export Ltd.) has been made. As the result of this assignment I found the performances
of S.Kumar Nationwide Ltd. is better than Gokaldas Export Ltd. Introduction Financial statement
analysis is a technique of answering various questions regarding the performance of the firm in the
past, present and future. So in this assignment we have ... Show more content on Helpwriting.net ...
Selecting Benchmark Firm There are many leading companies in textile industry however many of
them are also involved in other industries. I have selected the below companies which have textile
as more than 90% of the Turnover. Table Showing – Comparison On Peer Group Firms Name Of
The Firm S.Kumars Nationwide Ltd. Maxwell Industries Ltd. Malwa Cotton Spinning Mills Ltd.
Gokaldas Exports Ltd. Loyal Textiles Mills Ltd. Siyaram Silk Mills Ltd 2010 Sales in crores
1,550.19 211.39 458.90 1,093.40 424.06 647.87 Table – A1 Net Profit 60.09 7.02 –43.72 3.37 –
14.13 11.44 Profit % 3.88 3.32 –9.53 0.31 –3.33 1.77 I have selected Gokaldas Exports Ltd. From
the above 5 firms that I considered to compare with the main firm. The first factor that I considered
was Gokaldas Exports Ltd's Sales is near to the main Firm when compared to the other firms.
However I was not compromised to their profit percentage so I also considered their pervious
performers comparing with S.Kumars Nationwide Ltd. for past 5 years to justify my selection.
Please find the comparison in next page. Page – 4 of 24 Table Showing – Comparing Profit % For
Five Years Year 2009 2008 2007 2006 2005 S.Kumars Nationwide Ltd. Total Sales Net Profit Profit
% 1550.23 1605.72 1229.54 889.73 344.53 60.09 178.13 107.47 99.78 9.15 3.88 11.09 8.74 11.21
2.66 Table – A2 Gokaldas Exports Ltd. Total Sales Net Profit Profit % 1,093.40 1,002.57 999.81
... Get more on HelpWriting.net ...
Financial Statement Analysis : Financial Assessment And...
INTRODUCTION Different segments of the general public are keen on data about the present
budgetary positions and future prospects of business undertakings. Presently the people perhaps
straightforwardly identified with the enterprise, or they may be keen on securing relations with the
same instantly. Their essential target is to choose whether they will keep up, reinforce, or break their
current relations with the business undertakings.
Various proclamations readied toward the end of each bookkeeping period to survey Financial
Activities and Financial position of a worry are altogether called Financial Statements. They consist
of the following:
Income Statement
Balance Sheet
Cash Flow Statement
Fund Flow Statement
On the premise of the data uncovered in Financial Statements, clients of these come to think about
the development, productivity, dissolvability, and monetary quality of an undertaking.
Monetary Statement Analysis is an investigation which discriminatingly looks at the relationship
between different components of the Financial Statements with a perspective to acquire vital and
compelling data from these. It a methodology of filtering Financial Statements for assessing the
relationship between the things as revealed in these. It is fundamentally a posthumous of the value–
based exercises of a venture as unveiled in the Financial Statements in order to judge operational
capacity, capacity, gainfulness, dissolvability, managerial effectiveness and
... Get more on HelpWriting.net ...
Discuss The Four Basic Financial Statement Analysis...
List four basic financial statement analysis procedures, describe how you would calculate each
procedure and discuss why you would use each procedure. Based on your reading and outside
research, please communicate your own understanding of the requirements. Citations and references
are required.
The use of financial statements is to provide individuals, but not a specific group with compressed
financial data showing them the information that pertains to the decision they want to make. They
are also able to see past performance of their company and comparing corporation that is in the
same industry (Edmonds, Tsay, & Olds, 2011).
The most basic analytical techniques, vertical, horizontal and ratio analyses provide financial
investigators
... Get more on HelpWriting.net ...
Analysis of Financial Statement
CFIN4
ANALYSIS OF FINANCIAL
STATEMENTS
1/21/15
CHAPTER 2
1
1.
2.
Describe the basic financial information that is produced by corporations and explain how the firm's
stakeholders use such information. Describe the financial statements that corporations publish and
the information that each statement provides.
2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in
whole or in part, except for use as permitted in a license distributed with a certain product or service
or otherwise on a password–protected website for classroom use.
LEARNING OUTCOMES
3.
4.
Describe how ratio analysis should be conducted and why the results of such an analysis are
important to both managers and investors. ... Show more content on Helpwriting.net ...
All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use
as permitted in a license distributed with a certain product or service or otherwise on a password–
protected website for classroom use.
UNILATE TEXTILES
 Presents
the results of business operations during a specified period of time
 Summarizes the revenues generated and the expenses incurred 11
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in
whole or in part, except for use as permitted in a license distributed with a certain product or service
or otherwise on a password–protected website for classroom use.
THE INCOME STATEMENT
YEARS ENDING DEC. 31
($ millions, except per share data)
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in
whole or in part, except for use as permitted in a license distributed with a certain product or service
or otherwise on a password–protected website for classroom use.
UNILATE TEXTILES:
INCOME STATEMENTS
12
 Designed
to show how the firm's operations have affected its cash position  Examines investment decisions
(uses of cash)
 Examines financing decisions
(sources of cash)
13
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in
whole or in part, except for use as permitted in
... Get more on HelpWriting.net ...
Financial Statements And Financial Statement Analysis Essay
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
Financial statements are usually means of communicating information on a company's operations.
They contain information on the revenues, expenses, assets, liabilities and retained earnings of the
business.
2.2 FINANCIAL STATEMENT ANALYSIS
According to Drake (2010), financial statement analysis is the selection, evaluation, and
interpretation of financial data, along with other pertinent information, to assist in investment and
financial decision–making. Moreover, it is also the process of identifying financial strengths and
weaknesses of the firm by properly establishing relationship between the items of the balance sheet
and the profit and loss account. Brigham, E., & Houston, J. (2007), "Financial statements report
both a firm's position at a point in time and its operations over some past period. However, their real
value lies in the fact that they can be used to help predict future earnings and dividends". Financial
ratios are designed to help one evaluate a financial statement.
Ffigures derived from the published annual financial statements and accounts of the companies are
used to produce values that interpret financial meaning. Organizations regularly evaluate their
financial statements by means of ratios and compare the values to those of similar entities or analyze
their firm's financial ratios over time (trend analysis) to show weaknesses or opportunities for
improvement as it is critically important for decision
... Get more on HelpWriting.net ...
Financial statement analysis and report
ACFI 1001 Accounting for Decision Makers – Individual Project (15%)
Financial Statement Analysis and Report
Objectives
Apply theory in practice
Conduct analysis of financial statement – to look beyond the numbers
Experience formal report writing.
REQUIRED: Written report (a soft copy on blackboard via turnitin and printed copy to tutors is
compulsory)
1. Obtain the most recent annual report for two companies in any of the industries on the Australian
Stock Market (for example, mining, retail, manufacturing, construction, service, transport). The
reports should contain at least three years of income statement data and two years of balance sheet
data. Use one of the chosen companies as your 'base company' and the other ... Show more content
on Helpwriting.net ...
11.25 – 12.75 marks: The paper generally is well written but may have minor grammatical or other
writing errors or lack smooth transitions. The report addresses the issues specified in the
requirements, demonstrates understanding, and focuses mainly on important items, but does not
fully synthesize the material being discussed, and/or does not integrate the annual report data with
the narrative.
9.75 – 11.25 marks: The paper does not have excessive grammatical or other writing errors. The
report addresses the issues specified in the requirements, but demonstrates only moderate
understanding, and/or lacks integration.
7.5 – 9.75 marks: The paper does not have excessive grammatical or other writing errors. The report
addresses the issues specified in the requirements but demonstrates only minimal understanding of
one or more of the issues.
0 – 7.5 marks: The paper fails to meet the basic requirements, has excessive composition errors,
and/or fails to demonstrate understanding of the requirements.
Guide to understand and find annual report of companies:
Most public companies have made their annual reports available at company websites.
A company 's annual reports are often located under the Investor Information section at the company
website.
You can use the Company Search http://www.asx.com.au/research/company–research.htm function
to find the Internet addresses and other details of Australian companies listed on
... Get more on HelpWriting.net ...
Financial Statement Analysis And Ratios
Chapter 17 covers the financial statement analysis and ratios. Financial statement analysis is the
process of examining financial statements that will depict the financial position of the company
allowing them to make better financial decisions. A typical financial statement consist of a balance
sheet, income statement, cash flow statement and notes to account. The most common being the
balance sheet and the income statement. The balance sheet, also referred to as a statement of
financial positon, is usually made up of assets and liabilities and provides information about the
financial position of the company. It is a two sided report, assets on one side, and liabilities on the
other. Liabilities typically include accounts payable, accrues expenses, income tax owed,
stockholders' equity (net worth), and loans. The income statement, also referred to the earning and
loss statement, depicts the profitability of the company. It shows to total sales revenue for one year.
The expenses the company incurs in producing finished good to sell is subtracted from the sales
revenue. Also deducted is the operating cost expenses and the deprecation. When analyzing the
income statement, it is important to note that the profitability isn't just the total profit. It is important
to look at the ratio of expenses as a percentage of profit. A company with high profits and high
expenses could easily be mismanaged.
However, balance sheets and income statements have little meaning by
... Get more on HelpWriting.net ...
Hrm 531 Week 2 Financial Statement Analysis
Memo
To: John Doe
From: Team C
Date: February 20, 2012
Subject: Auditing, share–based payment and SPE reporting
A publically traded company offers challenges to auditing when it comes to shared–based payment
reporting and special–purpose entities (SPE) reporting individually. The most basic principle of
GAAP at risk is the qualitative characteristic of reliability. Shared–based payment and SPE reporting
individually has been broken down to better equip the audit for our client.
It is important to notice that Special Purpose Entities should be carefully reviewed by each member
of the auditing team. Even more after it was proven that most of Enron's fraudulent accounting
practices involved SPE. SPE allows companies to reduce their ... Show more content on
Helpwriting.net ...
SPE Reporting Individually
A special purpose entity (SPE) is a business interest formed in order to perform a specific task or
tasks. SPE's are also referred to as off–balance sheet arrangements. SPE's are formed to 1). Finance
certain assets or services and keeping the associated debt off the balance sheet of the sponsors,
2).Transform certain financial assets, such as trade receivables, loans, or mortgages, into liquid
securities, and 3). Engage in tax–free exchanges (Saroosh, 2004). Most of the SPE's in the U.S. have
been organized as limited liability corporations (LLC). A trust is also a common SPE in the U.S.
US GAAP has two models for off–balance sheet treatment of SPEs – one addressing de–recognition
of assets and the second dealing with consolidation of variable interest entities. Initially accounting
treatment for SPE's was established by FAS 140. Until 2010, de–recognition of assets were
governed by FAS 140, according to Basel Committee (2009). In order to be de–recognized, assets
must be isolated from the transferor and put beyond the reach of creditors and receivers. This
standard is commonly referred to as meeting "true sale" criteria. To qualify as a true sale; the
transferor must surrender effective control over the
... Get more on HelpWriting.net ...
Financial Statement Analysis Of Amazon.com, Inc.
Financial Statement Analysis AMAZON.COM, INC. History Incorporated in 1994 and launched in
1995 as an online bookstore, Amazon.com was founded by Jeff Bezos with a vision of creating "the
everything store" (Stone, 2013) and the largest of its kind; hence, it was named after the largest river
in the world (D'Onfro, 2014). In 1997, Amazon announced IPO and trading began on NASDAQ
under "AMZN". That same year, Amazon sold to its one–millionth customer copies of a Windows
NT manual and The Royals, Kitty Kelley's biography of the British Royal family, hand–delivered to
Japan by founder Jeff Bezos. Since 1998, Amazon has started expanding and opened its doors to
international trading by launching its first international websites: Amazon.co.uk (UK) and
Amazon.de (Germany). In 2000, Amazon publicly showed its intention of selling all goods by
adding a curved arrow from A to z on the company logo (Hayes, 2015). That same year, Amazon
Marketplace allowed third party sellers (individuals and companies) to sell new and used products
on the Amazon platform. By 2001, Amazon finally earned a quarterly profit of $5 million on
revenues of over $1 billion. In 2005, Amazon launches Amazon Prime, a membership that gives
faster deliveries and access to Amazon's film and tv streaming service, of which Google chairman,
Eric Schmidt, is a member (Stone, 2013). In 2007, Amazon Kindle e–book reader was launched and
as of 2014, there are 2.5 million e–book titles available (Hayes, 2015).
... Get more on HelpWriting.net ...
The Analysis Of Financial Statements
The analysis of financial statements is the critical process that is aimed at assessing the present and
past financial position and the results of operations that are carried out in a company. The primary
objective of this analysis is to establish the best possible estimates and predictions about future
results and conditions that the company can reach. It is based on two primary pieces of knowledge,
where the first is the in–depth knowledge of the accounting model and the second would be the
domain of the tools used for the financial analysis, which enables the identification and analysis of
the relationship between financial and operational factors. For that reason, the financial analysis is a
working tool widely used by the directors ... Show more content on Helpwriting.net ...
A viable alternative to solve this problem is based on providing the company the analytical tools
necessary to include indicators of liquidity, solvency, and profitability, but also serve as support for
the process of administrative decisions of the enterprise. A company's financial information will
assess the operation of the business and provide the real financial condition of the entity as well as
the efficiency of the management. The financial statements of a company facilitate efficient and
effective decision making. The financial analysis of a corporation helps assess the financial growth
of the enterprise. Effective decision making leads to proper management of company resources.
BUSINESS ANALYSIS
Unfortunately, the company does not have an efficient financial model that can provide the financial
information needed to measure its economic indicators. Currently, the company only has some
accounting reports, provided by the accounting department of the enterprise, such as purchase and
... Get more on HelpWriting.net ...
Financial Analysis On Financial Statements
Firm Performance: A Review of Financial Statements Financial crises like dot–com bubble in the
late 1990s and the housing market crash in the late 2000s prompted investors, and firms, to
reconsider the criticality of financial discipline. Transparency would be necessary to entice investors
to spend money again, thus a firm's financial statements became their marketing tools. These
examples reinforce the importance of financial statements' relation to the financial wellbeing of a
company. This paper serves as a report on the purpose and aspects of the various financial
statements and their applicability to the performance of a firm.
Income Statements
Income statements, also known as profit–and–loss statements, are one of the core financial
statements publicly held firms must present annually. Serving as the officially documented
representation of company expenses and revenues over a set duration, the income statement is often
used to assess the performance and profitability of a company (Alvis, n.d.). The key expense items
included on an income statement are: general and administrative expenses (G&A), research and
development expenses, depreciation/amortization, and cost of revenue (Alphabet, 2014).
The crucial importance behind the income statement lies in its ability to lay out the relevant facts in
a simplistic manner. By reviewing a company's income statement, one can instantaneously ascertain
the financial productivity of a company and their current
... Get more on HelpWriting.net ...
Financial Statement Analysis and Financial Forecasting
Financial Statement Analysis and Financial Forecasting
4.1 Introduction. The lesson will consist of basic financial statements, its relevancy, reliability and
quality as a basis for making decisions. Focus on the decision–making role of accounting system has
to be elaborated. Also ratio analysis as decision tool with forecasting models is discussed. The basis
concept of preparation of financial statement and its usefulness is included with ratio analysis. Cash
flow analysis and financial planning with forecasted financial statement are covered.
4.2 Source of Financial Information. Accounting is the guide–post for management. A firm should
know the financial implications of its operations. The financial score of the firm is kept by ... Show
more content on Helpwriting.net ...
Measures assets and liabilities in monetary units and in accordance with cost principles.
Communicates information about assets (resources), liabilities (out side claims), and owners' equity.
4.3.4 Profit and Loss Account (Income Statement). Income statement is considered as a very
significant statement, with more attention to the firm's earning capacity as a measure of its financial
strength. The earning capacity and potential of a firm is reflected by its income statement. The
generally accepted convention is to show one year's events in income statement. Since the income
statement reflects the results of operations for a period of time, it is a flow statement. The income
statement presents the summery of revenues, expenses and net income of a firm. It serves as a
measure of the firm's profitability. Revenues are amounts which the customers pay to the firm for
providing them goods and services. The firm uses economic resources in providing goods CDCE
Page 2
and services to customers. The cost of the economic resources used to earn revenues during a
period of time called expenses. Thus, to determine net income, the accounting system matches
expenses incurred during the accounting period against revenues earned during that period. The
matching of expenses with revenue is called matching
... Get more on HelpWriting.net ...
Common Methods Of Financial Statement Analysis
Financial statement analysis is used to identify the trends and relationships between financial
statement items. Both internal management and external users (such as analysts, creditors, and
investors) of the financial statements need to evaluate a company's profitability, liquidity, and
solvency. The most common methods used for financial statement analysis are trend analysis,
common‐size statements, and ratio analysis. These methods include calculations and comparisons of
the results to historical company data, competitors, or industry averages to determine the relative
strength and performance of the company being analyzed.
A branch of economics concerned with resource allocation as well as resource management,
acquisition, and investment. Simply Finance deals with related to money and the markets. To raise
money through the issuance and sale of debt and equity.
It is observed that while considering the firm performance, the profit and wealth maximization are
liked and effected by one another. A company's financial performance therefore is normally ... Show
more content on Helpwriting.net ...
These statements allow analysts to measure liquidity, profitability, company–wide efficiency and
cash flow. There are three main types of financial statements: the balance sheet, income statement
and cash flow statement. The balance sheet is a snapshot in time of the company's assets, liabilities
and shareholders' equity. Analysts use the balance sheet to analyze trends in assets and debts. The
income statement begins with sales and ends with net income. It also provides analysts with gross
profit, operating profit and net profit. Each of these is divided by sales to determine gross profit
margin, operating profit margin and net profit margin. The cash flow statement provides an
overview of the company's cash flows from operating activities, investing activities and financing
... Get more on HelpWriting.net ...
Let 's Talk About Financial Statement Analysis
Let's talk about Financial Statement Analysis is the process of reviewing and analyzing a company's
financial statements to make better decisions. When you are dealing with financial statement
analysis you will be looking at income statement, balance sheet, statement of cash flows, and a
statement of retained earnings. The larger field of business analysis is very significant and essential.
Forecasts and jeopardy are part of the process in business analysis. Most business will make sure
they have a business analysis due to it is very useful in business decisions. Debt securities and
equity is a wide range of business analysis to make very important business decisions. In your
business you want to spread your credit through short or ... Show more content on Helpwriting.net
...
Helping organizing business task through business analysis through evaluation of company's
business environment, its strategies, and its financial position and performance. I would begin by
evaluating a company business environment and strategies. We start by learning the company's
business accomplishments and learn that it is a top global consumer product company. We are trying
to see if the company have worldwide accepted brands that are mainly in the oral, personal, and
home care arcades.
FINANCIAL STATEMENT ANALYSIS 4 Ensure you have worthy supporters to loan funds to your
company in return for a potential of repayment with interest. So you know this type of financing is
momentary since supporters want repayment of their funds with interest. Creditors are all about
making money in the course of helping you out with your industry. Creditors have different ways to
loan treasuries in many forms and for a variation of tenacities. Supporters will work with you to
make sure which is right for your business. If you decide to organize trade then functioning creditors
will transport goods and services to a firm and expect payment within a sensible period, often
stubborn by industry norms. Some trade credit is petite term, vacillating from 30 to 60 days, with
cash discounts often settled for speedy payment. Skill creditors usually do not receive interest for a
... Get more on HelpWriting.net ...
Apple's Financial Statement Analysis
APPLE COMPUTER COMPANY
Financial Statement Analysis Project
Table of Contents
Part I .....................................................................3
Part II .....................................................................5
Part III ....................................................................6
Part IV ....................................................................7
Part V ......................................................................8
Part VI ...................................................................10
Part VII ..................................................................11
Appendices ...............................................................12
Appendices
AAPL
5 Year Balance Sheet Report...........................................12
5 Year Income Statement................................................13
5 Year Cash Flow Statement............................................14
Asustek Computer Inc
5 Year Balance Sheet Report...........................................15
5 Year Income Statement................................................16
5 Year Cash Flow Statement............................................17
Cisco Systems Inc
5 Year Balance Sheet ... Show more content on Helpwriting.net ...
Asustek Computer Inc operates in Semiconductors industry. The Group 's principal activities are
designing, manufacturing and selling computer products and other electronic products. Products
include computer motherboards, computer software, supplemental and upgrading cards, optical
instruments, wired and wireless telecommunication apparatus. Operations are carried out in Taiwan,
Asia Pacific and other countries. The Group exports its products to Canada, Asia Pacific, the United
States of America, Europe and South Africa. Cisco Systems Inc operates in Telecommunications
Equipment industry. The Group 's principal activities are to design, manufacture and sell Internet
Protocol (IP)–based networking and other products related to the communications and information
technology (IT) industry and provide services associated with these products and their use. The
Group 's products are installed at enterprise businesses, public institutions, telecommunications
companies, commercial businesses and personal residences. The Group offers its products in five
categories: Switches, Advanced Technologies, Routers, Service, and Other. Its service offerings
include technical support services and advanced services. It operates in the United States, Canada,
European Markets, Eastern Europe, Latin America, the Middle East and Africa, Russia, Asia Pacific
and Japan. During Fiscal 2009, the Group acquired PostPath, Inc., Pure
... Get more on HelpWriting.net ...
Financial Statement Analysis
Chapter 2
Introduction to Financial Statement Analysis
2–1. What are the four main financial statements? What checks are there on the accuracy of these
statements?
The four financial statements are: the balance sheet, the income statement, the statement of cash
flows, and the statement of changes in shareholders' equity. Financial are required to be audited by a
neutral third party, who checks and ensures that the financial statements are prepared according to
GAAP or accounting standards and that the information contained is reliable.
2–2. Who reads financial statements? List at least three different categories of user. For each
category, provide an example of the type of information they might be interested in and ... Show
more content on Helpwriting.net ...
2–5. What was the change in Nokia's book value of equity from 2006 to 2007 according to Table
2.1? Does this imply that the market price of Nokia's shares increased in 2007? Explain.
Nokia's book value of equity increased by €5,278 million from 2006 to 2007. An increase in book
value does not necessarily indicate an increase in Nokia's share price. The market value of a share
does not depend on the historical cost of the firm's assets, but on investors' expectation of the firm's
future performance. There are many events that may affect Nokia's future profitability, and hence its
share price, that do not show up on the balance sheet.
2–6. Use EDGAR to find Qualcomm's 10K filing for 2009. From the balance sheet, answer the
following questions:
a. How much did Qualcomm have in cash and short–term investments?
b. What were Qualcomm's total accounts receivable?
c. What were Qualcomm's total assets?
d. What were Qualcomm's total liabilities? How much of this was long–term debt?
e. What was the book value of Qualcomm's equity?
a. $2,717 million (cash) and $8,352 million (short–term investments/marketable securities) for a
total of $11,069 million
b. $700 million
c. $27,445 million
d. 7,129 million, nothing
e. $20,316 million
2–7. Find online the annual report of Cadbury from www.cadburyinvestors.com for 2007. Answer
the following questions from their balance
... Get more on HelpWriting.net ...
Financial Statement Analysis : Australian Vintage Ltd
FINANCIAL STATEMENT ANALYSIS
ANALYSIS OF
PREPARED BY: MALIK JAMSHAIN ANJUM
STUDENT ID: 151MAM5012
TABLE OF CONENTS:
INTRODUCTION. COMPANY PROFILE
SWOT ANALYSIS. INTERNAL AND EXTERNAL
FINANCIAL PERFORMANCE: RATIO ANALYSIS
1. PROFITABILITY
2. LIQUIDITY
3. EQUITY
4. VALUATION
5.
COMPANY PROFILE:
AUSTRALIAN VINTAGE LTD details
Winemaking, wine marketing and vineyard management
Issuer code AVG
Official listing date 26/03/1992
GICS industry group
Food, Beverage & Tobacco
Exempt foreign? No
Internet address http://www.australianvintage.com.au
Registered office address 275 Sir Donald Bradman Drive, COWANDILLA, SA, AUSTRALIA,
5033
Head office telephone 08 8172 8333
Head office fax 08 8172 8399
Share registry COMPUTERSHARE INVESTOR SERVICES PTY LIMITED
LEVEL 5, 115 GRENFELL STREET, ADELAIDE, SA, AUSTRALIA, 5000
Share registry telephone 1300 787 272
Directors/Senior management:
Mr Ian D Ferrier Chairman, Director
Mr Neil McGuigan CEO, Executive Director
Mr Richard Davis Director
Mr Perry R Gunner Director
Mr Brian J McGuigan Director
Mr Mike Noack CFO
Company secretary:
Mr Mike Noack Company Secretary
Australian Vintage Limited is a leading Australian wine company. Championing a fully–integrated
wine business model, the breadth of our capabilities extends to vineyards, boutique and bulk wine
production, packaging, marketing and distribution. As one of the largest vineyard owners and
managers in Australia, Australian Vintage
... Get more on HelpWriting.net ...
Financial Statement Analysis
MODULE 10 FINANCIAL STATEMENT ANALYSIS THEORIES: 6. Management is a user of
financial analysis. Which of the following comments does not represent a fair statement as to the
management perspective? A. Management is always interested in maximum profitability. B.
Management is interested in the view of investors. C. Management is interested in the financial
structure of the entity. D. Management is interested in the asset structure of the entity. Limitations 1.
A limitation in calculating ratios in financial statement analysis is that A. it requires a calculator. B.
no one other than the management would be interested in them. C. some account balances may
reflect atypical data at year end. D. they ... Show more content on Helpwriting.net ...
vertical analysis C. profitability analysis B. solvency analysis D. horizontal analysis 11. Horizontal
analysis is also known as A. linear analysis. C. trend analysis. B. vertical analysis. D. common size
analysis. 13. In which of the following cases may a percentage change be computed? A. The trend of
the amounts is decreasing but all amounts are positive. B. There is no amount in the base year. C.
There is a negative amount in the base year and a negative amount in the subsequent year. D. There
is a negative amount in the base year and a positive amount in the subsequent year. 14. Horizontal
analysis is a technique for evaluating a series of financial statement data over a period of time A.
that has been arranged from the highest number to the lowest number. B. that has been arranged
from the lowest number to the highest number. C. to determine which items are in error. D. to
determine the amount and/or percentage increase or decrease that has taken place. Trend analysis 16.
Trend analysis allows a firm to compare its performance to: A. other firms in the industry C. other
industries B. other time periods within the firm D. none of the above Risk and return 29. The present
and prospective stockholders are primarily concerned with a firm' A. profitability C. leverage B.
liquidity D. risk and
... Get more on HelpWriting.net ...

More Related Content

Similar to International Financial Statement Analysis Workbook

punjab national bank
punjab national bankpunjab national bank
punjab national bankA S
 
Financial Accounting Standards Board For Profit And...
Financial Accounting Standards Board For Profit And...Financial Accounting Standards Board For Profit And...
Financial Accounting Standards Board For Profit And...Nicole Fields
 
Managing A Firm Based On Past Oriented Financial Statements
Managing A Firm Based On Past Oriented Financial StatementsManaging A Firm Based On Past Oriented Financial Statements
Managing A Firm Based On Past Oriented Financial StatementsBeth Hernandez
 
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docxblondellchancy
 
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docxalinainglis
 
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docxpriestmanmable
 
FINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdf
FINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdfFINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdf
FINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdfVismayTyagi
 
Analyzing The Functions Of A Business, Many Relies On...
Analyzing The Functions Of A Business, Many Relies On...Analyzing The Functions Of A Business, Many Relies On...
Analyzing The Functions Of A Business, Many Relies On...Jasmine Culbreth
 
FINANCIAL-STATEMENT-FINAL (1).pptx
FINANCIAL-STATEMENT-FINAL (1).pptxFINANCIAL-STATEMENT-FINAL (1).pptx
FINANCIAL-STATEMENT-FINAL (1).pptxlhaniemadro
 

Similar to International Financial Statement Analysis Workbook (9)

punjab national bank
punjab national bankpunjab national bank
punjab national bank
 
Financial Accounting Standards Board For Profit And...
Financial Accounting Standards Board For Profit And...Financial Accounting Standards Board For Profit And...
Financial Accounting Standards Board For Profit And...
 
Managing A Firm Based On Past Oriented Financial Statements
Managing A Firm Based On Past Oriented Financial StatementsManaging A Firm Based On Past Oriented Financial Statements
Managing A Firm Based On Past Oriented Financial Statements
 
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
 
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
 
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
6 Analyzing Financial ReportsLearning ObjectivesAfter .docx
 
FINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdf
FINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdfFINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdf
FINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdf
 
Analyzing The Functions Of A Business, Many Relies On...
Analyzing The Functions Of A Business, Many Relies On...Analyzing The Functions Of A Business, Many Relies On...
Analyzing The Functions Of A Business, Many Relies On...
 
FINANCIAL-STATEMENT-FINAL (1).pptx
FINANCIAL-STATEMENT-FINAL (1).pptxFINANCIAL-STATEMENT-FINAL (1).pptx
FINANCIAL-STATEMENT-FINAL (1).pptx
 

More from Michelle Singh

Nursing Essay. Online assignment writing service.
Nursing Essay. Online assignment writing service.Nursing Essay. Online assignment writing service.
Nursing Essay. Online assignment writing service.Michelle Singh
 
Top Rated Paper Writing Services. 90 Best Essay Writing Service Ideas
Top Rated Paper Writing Services. 90 Best Essay Writing Service IdeasTop Rated Paper Writing Services. 90 Best Essay Writing Service Ideas
Top Rated Paper Writing Services. 90 Best Essay Writing Service IdeasMichelle Singh
 
Why College Athletes Should Get Paid Essay Example StudyHip
Why College Athletes Should Get Paid Essay Example StudyHipWhy College Athletes Should Get Paid Essay Example StudyHip
Why College Athletes Should Get Paid Essay Example StudyHipMichelle Singh
 
How To Write College Essay Now Students. Online assignment writing service.
How To Write College Essay Now Students. Online assignment writing service.How To Write College Essay Now Students. Online assignment writing service.
How To Write College Essay Now Students. Online assignment writing service.Michelle Singh
 
Free Descriptive Essay Examples Topics, Outline
Free Descriptive Essay Examples Topics, OutlineFree Descriptive Essay Examples Topics, Outline
Free Descriptive Essay Examples Topics, OutlineMichelle Singh
 
Download Reflective Essay Example 50 Essay Examp
Download Reflective Essay Example 50 Essay ExampDownload Reflective Essay Example 50 Essay Examp
Download Reflective Essay Example 50 Essay ExampMichelle Singh
 
Pin On Essay On Plagiarism In C. Online assignment writing service.
Pin On Essay On Plagiarism In C. Online assignment writing service.Pin On Essay On Plagiarism In C. Online assignment writing service.
Pin On Essay On Plagiarism In C. Online assignment writing service.Michelle Singh
 
Writing Abstract In A Research Paper - Helping
Writing Abstract In A Research Paper - HelpingWriting Abstract In A Research Paper - Helping
Writing Abstract In A Research Paper - HelpingMichelle Singh
 
001 Why I Need Scholarship Essay. Online assignment writing service.
001 Why I Need Scholarship Essay. Online assignment writing service.001 Why I Need Scholarship Essay. Online assignment writing service.
001 Why I Need Scholarship Essay. Online assignment writing service.Michelle Singh
 
😱 Interpretive Essay Format. Interpretive Essay Format. 2
😱 Interpretive Essay Format. Interpretive Essay Format. 2😱 Interpretive Essay Format. Interpretive Essay Format. 2
😱 Interpretive Essay Format. Interpretive Essay Format. 2Michelle Singh
 
The Best Research Paper Topics. 200 Easy Researc
The Best Research Paper Topics. 200 Easy ResearcThe Best Research Paper Topics. 200 Easy Researc
The Best Research Paper Topics. 200 Easy ResearcMichelle Singh
 
Cute Text Styles - Ladegpacific. Online assignment writing service.
Cute Text Styles - Ladegpacific. Online assignment writing service.Cute Text Styles - Ladegpacific. Online assignment writing service.
Cute Text Styles - Ladegpacific. Online assignment writing service.Michelle Singh
 
My Dream House Descriptive Essa. Online assignment writing service.
My Dream House Descriptive Essa. Online assignment writing service.My Dream House Descriptive Essa. Online assignment writing service.
My Dream House Descriptive Essa. Online assignment writing service.Michelle Singh
 
Ivory Paper - 35 X 23 In 24 Lb Writing Laid 25
Ivory Paper - 35 X 23 In 24 Lb Writing Laid 25Ivory Paper - 35 X 23 In 24 Lb Writing Laid 25
Ivory Paper - 35 X 23 In 24 Lb Writing Laid 25Michelle Singh
 
2 My First Day At College Short An. Online assignment writing service.
2 My First Day At College Short An. Online assignment writing service.2 My First Day At College Short An. Online assignment writing service.
2 My First Day At College Short An. Online assignment writing service.Michelle Singh
 
College Application Essay Samples LoveToKnow
College Application Essay Samples  LoveToKnowCollege Application Essay Samples  LoveToKnow
College Application Essay Samples LoveToKnowMichelle Singh
 
Pay For Essay - How To Pay Someone To. Online assignment writing service.
Pay For Essay - How To Pay Someone To. Online assignment writing service.Pay For Essay - How To Pay Someone To. Online assignment writing service.
Pay For Essay - How To Pay Someone To. Online assignment writing service.Michelle Singh
 
Imaginary Innovation Strategy Report To The CEO Of Boeing America
Imaginary Innovation Strategy Report To The CEO Of Boeing AmericaImaginary Innovation Strategy Report To The CEO Of Boeing America
Imaginary Innovation Strategy Report To The CEO Of Boeing AmericaMichelle Singh
 
Implementation Of Electronic Medical Records In Hospitals Two Case Studies
Implementation Of Electronic Medical Records In Hospitals  Two Case StudiesImplementation Of Electronic Medical Records In Hospitals  Two Case Studies
Implementation Of Electronic Medical Records In Hospitals Two Case StudiesMichelle Singh
 

More from Michelle Singh (20)

Nursing Essay. Online assignment writing service.
Nursing Essay. Online assignment writing service.Nursing Essay. Online assignment writing service.
Nursing Essay. Online assignment writing service.
 
Top Rated Paper Writing Services. 90 Best Essay Writing Service Ideas
Top Rated Paper Writing Services. 90 Best Essay Writing Service IdeasTop Rated Paper Writing Services. 90 Best Essay Writing Service Ideas
Top Rated Paper Writing Services. 90 Best Essay Writing Service Ideas
 
Why College Athletes Should Get Paid Essay Example StudyHip
Why College Athletes Should Get Paid Essay Example StudyHipWhy College Athletes Should Get Paid Essay Example StudyHip
Why College Athletes Should Get Paid Essay Example StudyHip
 
How To Write College Essay Now Students. Online assignment writing service.
How To Write College Essay Now Students. Online assignment writing service.How To Write College Essay Now Students. Online assignment writing service.
How To Write College Essay Now Students. Online assignment writing service.
 
Free Descriptive Essay Examples Topics, Outline
Free Descriptive Essay Examples Topics, OutlineFree Descriptive Essay Examples Topics, Outline
Free Descriptive Essay Examples Topics, Outline
 
Download Reflective Essay Example 50 Essay Examp
Download Reflective Essay Example 50 Essay ExampDownload Reflective Essay Example 50 Essay Examp
Download Reflective Essay Example 50 Essay Examp
 
Pin On Essay On Plagiarism In C. Online assignment writing service.
Pin On Essay On Plagiarism In C. Online assignment writing service.Pin On Essay On Plagiarism In C. Online assignment writing service.
Pin On Essay On Plagiarism In C. Online assignment writing service.
 
Writing Abstract In A Research Paper - Helping
Writing Abstract In A Research Paper - HelpingWriting Abstract In A Research Paper - Helping
Writing Abstract In A Research Paper - Helping
 
001 Why I Need Scholarship Essay. Online assignment writing service.
001 Why I Need Scholarship Essay. Online assignment writing service.001 Why I Need Scholarship Essay. Online assignment writing service.
001 Why I Need Scholarship Essay. Online assignment writing service.
 
😱 Interpretive Essay Format. Interpretive Essay Format. 2
😱 Interpretive Essay Format. Interpretive Essay Format. 2😱 Interpretive Essay Format. Interpretive Essay Format. 2
😱 Interpretive Essay Format. Interpretive Essay Format. 2
 
The Best Research Paper Topics. 200 Easy Researc
The Best Research Paper Topics. 200 Easy ResearcThe Best Research Paper Topics. 200 Easy Researc
The Best Research Paper Topics. 200 Easy Researc
 
Cute Text Styles - Ladegpacific. Online assignment writing service.
Cute Text Styles - Ladegpacific. Online assignment writing service.Cute Text Styles - Ladegpacific. Online assignment writing service.
Cute Text Styles - Ladegpacific. Online assignment writing service.
 
My Dream House Descriptive Essa. Online assignment writing service.
My Dream House Descriptive Essa. Online assignment writing service.My Dream House Descriptive Essa. Online assignment writing service.
My Dream House Descriptive Essa. Online assignment writing service.
 
Ivory Paper - 35 X 23 In 24 Lb Writing Laid 25
Ivory Paper - 35 X 23 In 24 Lb Writing Laid 25Ivory Paper - 35 X 23 In 24 Lb Writing Laid 25
Ivory Paper - 35 X 23 In 24 Lb Writing Laid 25
 
2 My First Day At College Short An. Online assignment writing service.
2 My First Day At College Short An. Online assignment writing service.2 My First Day At College Short An. Online assignment writing service.
2 My First Day At College Short An. Online assignment writing service.
 
College Application Essay Samples LoveToKnow
College Application Essay Samples  LoveToKnowCollege Application Essay Samples  LoveToKnow
College Application Essay Samples LoveToKnow
 
Pay For Essay - How To Pay Someone To. Online assignment writing service.
Pay For Essay - How To Pay Someone To. Online assignment writing service.Pay For Essay - How To Pay Someone To. Online assignment writing service.
Pay For Essay - How To Pay Someone To. Online assignment writing service.
 
Imaginary Innovation Strategy Report To The CEO Of Boeing America
Imaginary Innovation Strategy Report To The CEO Of Boeing AmericaImaginary Innovation Strategy Report To The CEO Of Boeing America
Imaginary Innovation Strategy Report To The CEO Of Boeing America
 
Implementation Of Electronic Medical Records In Hospitals Two Case Studies
Implementation Of Electronic Medical Records In Hospitals  Two Case StudiesImplementation Of Electronic Medical Records In Hospitals  Two Case Studies
Implementation Of Electronic Medical Records In Hospitals Two Case Studies
 
Siddhartha
SiddharthaSiddhartha
Siddhartha
 

Recently uploaded

Trauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical PrinciplesTrauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical PrinciplesPooky Knightsmith
 
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaPersonalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaEADTU
 
An overview of the various scriptures in Hinduism
An overview of the various scriptures in HinduismAn overview of the various scriptures in Hinduism
An overview of the various scriptures in HinduismDabee Kamal
 
An Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge AppAn Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge AppCeline George
 
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...Nguyen Thanh Tu Collection
 
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...Gary Wood
 
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfFICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfPondicherry University
 
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community PartnershipsSpring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community Partnershipsexpandedwebsite
 
How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17Celine George
 
Major project report on Tata Motors and its marketing strategies
Major project report on Tata Motors and its marketing strategiesMajor project report on Tata Motors and its marketing strategies
Major project report on Tata Motors and its marketing strategiesAmanpreetKaur157993
 
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUMDEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUMELOISARIVERA8
 
MOOD STABLIZERS DRUGS.pptx
MOOD     STABLIZERS           DRUGS.pptxMOOD     STABLIZERS           DRUGS.pptx
MOOD STABLIZERS DRUGS.pptxPoojaSen20
 
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...EADTU
 
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽中 央社
 
Book Review of Run For Your Life Powerpoint
Book Review of Run For Your Life PowerpointBook Review of Run For Your Life Powerpoint
Book Review of Run For Your Life Powerpoint23600690
 
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文中 央社
 

Recently uploaded (20)

Trauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical PrinciplesTrauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical Principles
 
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaPersonalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
 
An overview of the various scriptures in Hinduism
An overview of the various scriptures in HinduismAn overview of the various scriptures in Hinduism
An overview of the various scriptures in Hinduism
 
An Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge AppAn Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge App
 
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
 
Mattingly "AI & Prompt Design: Named Entity Recognition"
Mattingly "AI & Prompt Design: Named Entity Recognition"Mattingly "AI & Prompt Design: Named Entity Recognition"
Mattingly "AI & Prompt Design: Named Entity Recognition"
 
ESSENTIAL of (CS/IT/IS) class 07 (Networks)
ESSENTIAL of (CS/IT/IS) class 07 (Networks)ESSENTIAL of (CS/IT/IS) class 07 (Networks)
ESSENTIAL of (CS/IT/IS) class 07 (Networks)
 
Supporting Newcomer Multilingual Learners
Supporting Newcomer  Multilingual LearnersSupporting Newcomer  Multilingual Learners
Supporting Newcomer Multilingual Learners
 
Including Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdfIncluding Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdf
 
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
 
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfFICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
 
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community PartnershipsSpring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
 
How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17
 
Major project report on Tata Motors and its marketing strategies
Major project report on Tata Motors and its marketing strategiesMajor project report on Tata Motors and its marketing strategies
Major project report on Tata Motors and its marketing strategies
 
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUMDEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
 
MOOD STABLIZERS DRUGS.pptx
MOOD     STABLIZERS           DRUGS.pptxMOOD     STABLIZERS           DRUGS.pptx
MOOD STABLIZERS DRUGS.pptx
 
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
 
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
 
Book Review of Run For Your Life Powerpoint
Book Review of Run For Your Life PowerpointBook Review of Run For Your Life Powerpoint
Book Review of Run For Your Life Powerpoint
 
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
 

International Financial Statement Analysis Workbook

  • 1. International Financial Statement Analysis Workbook INTERNATIONAL FINANCIAL STATEMENT ANALYSIS WORKBOOK INTERNATIONAL FINANCIAL STATEMENT ANALYSIS WORKBOOK CFA Institute is the premier association for investment professionals around the world, with over 95,000 members in 134 countries. Since 1963 the organization has developed and administered the renowned Chartered Financial Analyst® Program. With a rich history of leading the investment profession, CFA Institute has set the highest standards in ethics, education, and professional excellence within the global investment community, and is the foremost authority on investment profession conduct and practice. Each book in the CFA Institute Investment Series is geared toward industry practitioners, along with graduate–level finance ... Show more content on Helpwriting.net ... tcomes Summary Overview Problems Contents 33 33 34 35 CHAPTER 7 Financial Analysis Techniques Learning Outcomes Summary Overview Problems 41 41 42 43 CHAPTER 8 International Standards Convergence Learning Outcomes Summary Overview Problems 49 49 50 51 CHAPTER 9 Financial Statement Analysis: Applications Learning Outcomes Summary Overview Problems 55 55 56 56 CHAPTER 10 Inventories Learning Outcomes Summary Overview Problems 59 59 60 61 CHAPTER 11 Long–Lived Assets Learning Outcomes Summary Overview Problems 65 65 66 67 CHAPTER 12 Income Taxes Learning Outcomes Summary Overview Problems 71 71 72 73 Contents vii CHAPTER 13 Long–Term Liabilities And Leases Learning Outcomes Summary Overview Problems 79 79 80 81 CHAPTER 14 Employee Compensation: Postretirement And Share–Based Learning Outcomes Summary Overview Problems 85 85 86 87 CHAPTER 15 Intercorporate Investments Learning Outcomes Summary Overview Problems 95 95 95 97 CHAPTER 16 Multinational Operations Learning Outcomes Summary Overview Problems 105 105 105 107 CHAPTER 17 Evaluating Financial Reporting Quality Learning Outcomes Summary Overview Problems 115 115 116 117 PART II Solutions CHAPTER 1 Financial Statement Analysis: An Introduction Solutions 121 123 123 CHAPTER 2 Financial Reporting Mechanics Solutions 125 125 viii CHAPTER 3 Financial Reporting Standards Solutions Contents 129 ... Get more on HelpWriting.net ...
  • 2.
  • 3. Financial Statement Analysis And Financial Statements The ultimate goal of accounting is to provide useful information to those that need it (Siam, & Rashid, 2010). Financial statements analysis is very important to various users because it helps to express the overall financial health of the organization (Gibson, 2013). Managers use the financial statements to measure the profitability of a company, manage day to day activities and make important decisions about pricing, production that will benefit the organization (Gibson, 2013). Financial statements are also used to form contracts between organizations. Using the debt to equity ratio, managers are able to determine how much capital should be raised for investment. Consumers on the other hand need the financial statements to tell them the ability of the company to meet their needs. This study presents a comprehensive assessment of the balance sheet components, income statement components and the fair value accounting system. Balance Sheet Balance sheets provides the snapshot of the overall financial position of an organization at a specific time especially the end of an accounting period (Haydon, & Wicks, 1966). It shows the assets owned, liabilities and the shareholder's equity. The balance sheet details can vary greatly based on the business size and complexity, however in general the balance sheet adheres to the following principle: The left side of the balance sheet must always equal to the right side (Orens, & Lybaert, 2010). ASSETS = LIABILITIES – SHAREHOLDER'S EQUITY ... Get more on HelpWriting.net ...
  • 4.
  • 5. Analysis of Microsoft Financial Statements Analysis of Financial Statements Financial statements are frequently a key source of information for financial decisions and taking a look at Microsoft's financial statements can help us decide certain things about the company. There are three different types of statements that will be discussed in this section. These include: the balance sheet, the income statement, and the statement of cash flows. They are discussed here in either the sense of quarterly or yearly statements and will be noted as so. All information has been derived from Yahoo Finance. (http://finance.yahoo.com) The first statement that will be analyzed for Microsoft is the balance sheet. The balance sheet is essentially a snapshot of what the firm owns ... Show more content on Helpwriting.net ... The final section of the statement of cash flows is the financing section, which shows the dividends paid, the purchases of stock, the net borrowings, and other possible cash flows from financing activities. A positive trend for investors is the fact that dividends paid has increased (even though it is negative to the firm) as well as sale purchase of stock, from 2009 to 2011 and even increased quarterly in 2011. The net borrowings is off an on from 2009 to 2011 possibly because of certain funds needed in particular years. In 2009, it was $5,746,000,000 and in 2010, it was $190,000,000. It shot back up again in 2011, with $5,960,000,000. The three statements that were provided in this section provide possible investors, competitors, and even those within the company with useful information to make important decisions that could affect their livelihood or the livelihood of Microsoft. Keep in mind that even though financial statements are a solid indicator of how a company is performing, one key principle about must be known when viewing them to make decisions. They do not always provide all of the information that you may need. There are usually underlying topics that could affect the company that are not necessarily showing up on their financial statements. These topics are discussed in other sections of this report on Microsoft. We feel it important to compare Microsoft's ratios not only to other companies and industry norms, ... Get more on HelpWriting.net ...
  • 6.
  • 7. Financial Statement Analysis : Google Inc. Google Inc. Year 2012 Financial Statement Analysis Name Professor Institution Course Date GOOGLE INC. FINANCIAL STATEMENT ANALYSIS Introduction Investment has been a key factor in business world. People search for the best performing industries and identify the most profitable company, which they then invest their money. Although one can judge the company's investment worth through profits, analysis of the entire financial statement is critical for a good decision–making. In the current business industry, financial statements have become critical in understanding the financial performance of a business in order to make proper investment decisions. In addition, the financial statements are important in providing information to ... Show more content on Helpwriting.net ... The employees use the financial GOOGLE INC. FINANCIAL STATEMENT ANALYSIS rations to assess the profitability and stability of the company for them to have job assurances and pay rise. In this paper, the financial statement for Google Inc. as year ended 2012 will be used for analysis where different ratios will be evaluated and calculated. The analysis will include Horizontal Analysis on income, Horizontal Analysis of the Balance Sheet, Trend Analysis on Net Sales, Income from Continuing Operations, Net Income Vertical Analysis, Income statement Vertical Analysis, Balance Sheet Ratio Analysis: Working Capital, Current Ratio, Cash Ratio, Acid–Test (Quick) Ratio, Inventory Turnover, Days' Sales in Inventory, Gross Profit Percentage, Accounts Receivable Turnover, Days' Sales in Receivables, Debt Ratio, Debt to Equity Ratio, Times–Interest–Earned Ratio, Profit Margin Ratio, Rate of Return on Total Assets, Asset Turnover Ratio, Rate of Return on Common Stockholders' Equity, Earnings per Share Price, Earnings (P/E) Ratio, Dividend Yield, Dividend Payout, and uses of charts and graphs for the discussion of the results (Warren, Reeve, J& Duchac, 2009). The importance and the implications of the ratios to the Google Inc Company will be discussed and the investment potential determined. Brief background of Google Company Google Company is one of the ... Get more on HelpWriting.net ...
  • 8.
  • 9. Financial Statement Analysis : Business Model Of The Neo... INTRODUCTION Financial statement analysis is an evaluative method of determine the past, current and projected performance of a company. It is helps to understand the risk and profitability of a company by analyzing annual and quarterly reports. When we observe the financial statements comprising the balance sheet and profit and loss account is that they fail to reveal all the information related to financial operation of an organization. It will provide a summarized view of the organization. Therefore in order to critically examine profitability and constitution of the assets and liabilities it is necessary to carry out comparison of financial statements with the help of ratio analysis. ⦁ IMPORTANCE OF THE STUDY ⦁ The management of the company is responsible for taking decisions and formulating plans and policies for the future. ⦁ It is important to company because they can obtain useful information for their investment decision making purpose. ⦁ It is helps to extension of credits. ⦁ RESEARCH OBJECTIVES: ⦁ To understand the business model of the neo valves. ⦁ To understand company performance, through ratio analysis, balance sheet & income statement analysis. ⦁ To know the revenue and expenditure of the company. ⦁ ASSUMPTION AND LIMITATION: ⦁ As far as academic purpose is concern the time period falls too short to analyze and understand the complete details of the company's financial statements and analysis. ⦁ It is time consuming process. ⦁ Majority of the time ... Get more on HelpWriting.net ...
  • 10.
  • 11. Financial Statement Analysis : Financial Analysis Woolworth Financial Analysis Financial statement analysis assists a business entity, business shareholders and other people interested, to analyze the figures in financial statements to present them with superior information about such most important factors for decision making and ultimate business survival. As exemplified by Gibson (2001), income statement, balance sheet, and cash flow statements project the financial performance a company at the present and probably the future. According to the annual report 2014, Woolworth's revenue is projected to rise by 4.09% annually. The group's financial performance for the past four years is shown below. Table 1: Woolworths Limited Year Revenue AUD in millions Growth % 2010–11 54280 2011–12 55441 2.14 2012–13 58674 5.83 2013–14 60952 3.88 Average growth rate 3.95 The above table demonstrates a general idea of Woolworth's revenue and growth all over a three– year period. It is equally important to recognize the financial position and operational results in which were the follow–on behind Woolworths's steady growth. As a result, to identify these factors, the following ratios are used to evaluate Woolworths' financial position and results of operations.  Company Profitability ratio  Liquidity ratio  Activity ratio  Financial Leverage Ratios 1. Company Profitability ratio As exemplified by Baker & Powell (2005), profitability ratio assesses how successful a corporation has been in meeting its general revenue goals, ... Get more on HelpWriting.net ...
  • 12.
  • 13. A Financial Statement Analysis Project for Introductory... G lobal Perspectives on Accounting 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 USAABSTRACT This paper describes a financial statement analysis project useful in both preparerbased and user–based introductory courses in financial accounting. The project requires students to analyze trends in corporate performance, to evaluate corporate financial decisions, to discuss non–financial statement issues that would be important to potential investors, to compare two companies within an industry, ... Show more content on Helpwriting.net ... As a first step, the professors organize students into groups of four to five people, balancing the groups based on both academic major and performance in the class to date (including performance on homework and the first exam), as well as to achieve diversity. The group format is used to encourage students to learn from each other, to motivate students to consider alternative viewpoints, to develop students' understanding of group dynamics, and to limit the amount of time required of the project for both students and the faculty who must grade it. Each professor uses a different approach in selecting the industry and companies for analysis. One professor takes industry suggestions from the class (with the restriction that there be sufficient companies so that no more than two groups will have to analyze the same pair of companies), writes the suggestions on the board, and asks students to vote for their top two choices. Then, a second vote is taken from among the top two original suggestions, with a majority vote determining the industry to be analyzed. Finally, groups have one week to send the professor an email proposing two companies to analyze, with first responders being given preference, so that no more than two groups analyze the same pair. 85 Misch and Galantine 86 The other professor announces group assignments near the end of a class session, then allows groups ... Get more on HelpWriting.net ...
  • 14.
  • 15. Financial Statement Analysis Between China Mobile and... Financial Statement Analysis between China Mobile & China Unicom in HK stock market ➢ China Mobile Brief description: The company: China Mobile (Stock Exchange of Hong Kong 941) Competitor: China Unicom (Stock Exchange of Hong Kong 762) It's now estimated that China has more mobile phone users than any other country. According to statistics provided by the Ministry of Information Industry of the PRC, the number of mobile phone owners throughout the country totaled 539 million in November 2007. However, this is only a 41.5% penetration of the enormous population of 13 billion, and signals immense opportunity. Following the rapid growth of China's per capita income, increasingly more people are finding ... Show more content on Helpwriting.net ... Basic EPS grew 31.0% to RMB4.35. This reflected a relatively high level of profitability growth and earnings capability. The Group sustained its robust cash flow as a result of favorable business growth, effective cost control measures, efficient capital expenditure and economies of scale. Net cash generated from operating activities and free cash flow reached 168,612 million and 63,473 million, respectively. Total debt to total book capitalization ratio and interest coverage multiple remained at a sound level. This reflected China Mobile's commitment to consistently practise its prudent management discipline has earned good market recognition. Operating revenue for 2007 reached 356,959 million, up 20.9%. Leased Lines Self–constructed and jointly–constructed lines reached a sizeable scale through the continuous network structure optimization. The Group's leased line expenses reflected a declining trend. While various businesses were growing at a high pace, the leased line expenses decreased by 121 million. The Group consistently endeavored to drive long– term, sustainable and favorable profitability growth. Margin of profit attributable to shareholders and EBITDA margin in 2007 remained relatively high at 24.4% and 54.3%, respectively. Profit from operations was 124,068 million and maintained a rapid and steady growth. EBITDA, profit attributable to shareholders and ... Get more on HelpWriting.net ...
  • 16.
  • 17. Essay Acc 561 Week 2 Financial Statement Analysis Financial Statement Analysis NAME ACC/561 Accounting DATE University of Phoenix PROFESSOR Introduction Samsung – International Manufacturing Company Samsung served as the manufacturing industry and international company analyzed. Samsung has been in business for over 70 years and manufactures products for diverse markets, including: digital media, high –tech electronics, home appliances, information technology and telecommunication. Samsung's motto is to "inspire the world and create the future" by leveraging three key strengths: new technology, innovative products and creative solutions. | Samsung | Wells Fargo | AT&T | Current Ratio | 1.4101 | 1.1500 | 1.6467 | Debt to Equity Ratio | 0.6768 | 9.8100 | 0.9675 | ... Show more content on Helpwriting.net ... Wells Fargo shows a much higher profitability ratio than Samsung, with over 8X that of Samsung. This is to be expected as services are typically more profitable than hardware sales which operate on leaner margins. Wells Fargo also outperforms Samsung significantly on return on sales with over 25X better performance. This again is attributable to better margins on services than hardware. Wells Fargo has a much stronger return on equity than Samsung with a Dupont ratio over 5X higher than Samsung's. Samsung has a stronger financial leverage ratio than Wells Fargo with almost 20% lower ratio for Samsung. Samsung also has a much lower total asset turnover than Wells Fargo. This is attributable to the quick turnover of assets in the manufacturing industry compared to the slow turnover of assets in the financial services sector. With Samsung being the only international company evaluated, there doesn't seem to be any significant impact of IASB over FASB standards for accounting. With the ratios used, the core components of the balance sheet and income statement were utilized. The key elements of revenue, expenses, assets and liabilities weren't significantly impacted by IASB over FASB standards. Wells Fargo – Domestic Services Industry Company Wells Fargo is an international company based in United States and Canada. Wells Fargo has several divisions and services, ranging from basic deposit accounts to complex commercial loans. ... Get more on HelpWriting.net ...
  • 18.
  • 19. Financial Statement Analysis for Glaxosmithkline... List of Graphs [pic] Figure 1: Analysis of Sales Revenue 2010 9 Figure 2: Analysis of Sales Revenue 2011 10 Figure 3: Analysis of Sales Revenue 2012 10 Figure 4: Current ratio 16 Figure 5: Acid/Test Quick Ratio 17 Figure 6: Profit margin Ratio 18 Figure 7: Asset turnover 19 Figure 8: return on asset 19 Figure 9: Return on shareholders equity 20 Figure 10: Earning per share (EPS) 21 Figure 11: Price/Earning (P/E) ratio 22 Figure 12: Price/Equity ratio 22 Figure 13: Dividend per share (DPS) 23 Figure 14: Debt to total asset ratio 24 Figure 15: Net assets value per share 25 Figure 16: Market price per share 27 List of Tables [pic] Table 1: Analysis of Sales Revenue 10 ... Show more content on Helpwriting.net ... This change of name takes place following global merger of Glaxo Wellcome and SmithKline Beecham in December 2000. The Company has a total number of employees over 671 with an efficient management team. A team of 181 field–force including 11 line managers covers countrywide on average 2000 daily calls to 22,000 target doctors, while there is a strong team of distribution personnel engaged in distributed activities to cover average 19,000 customers including retailers and wholesalers through own distribution channel in 11 District Marketing Offices throughout the country. In Bangladesh, GlaxoSmithKline holds the 6th positions in pharmaceutical industry having a market share of 15.6% (as of September 2007) occupying strong hold in key therapeutic areas like Respiratory, Anti–infectives and Vacciness. Brand names of some major products of the company are: Ventolin Inhaler, Ceporex, Zinnat, Parapyrol, Zantac, Piriton, Dermovate, Betnovate, Dextrose, Engerix–B etc. Mission Statement [pic] "Our mission statement explains why we are in business. Our global quest is to improve the quality of human life by enabling people to do more, feel better and live longer. Our mission gives us purpose. Our size gives us opportunity. Our spirit gives us the qualities as individuals and as organization that will enable us to turn our opportunities into achievements. Our sprit will guide us, keep us ... Get more on HelpWriting.net ...
  • 20.
  • 21. Procter And Gamble Financial Analysis ANALYSIS OF FINANCIAL STATEMENT OF P&G CORPORATION IBRAHIM KALEEL GM MBA SRINIVAS INSTITUTE OF MANAGEMENT STUDIES PANDESHWAR MANGALORE – 575001 EMAIL: KALEELUCHIL227@gmail.com ANALYSIS OF FINANCIAL STATEMENT OF P&G CORPORATION Abstract : Analysis of financial statement of a company is an important because it is useful to obtain Information ... Show more content on Helpwriting.net ... Secondary information is collected for this case. This case study limited only one techniques of financial analysis that is Ratio Analysis and also taken a single company. Thus the conclusion of the analysis carried out in a professional manner will be able to correctly describe the evaluation of the company and to substantiate the user's decisions. Key words : Financial Statement, Ratio Analysis, Financial status, Financial performance. Introduction : Procter and Gamble Co. also know as P&G, is an American multinational consumer goods company, founded by William Procter and James Gamble. Its products include cleaning agents and personal care products. It has in its kitty global brands such as Ariel and Tide in the Fabric care segments and Head & Shoulder, Pantene and Rejoice is the Hair care segment. For this case study selects P&G Company as it has an important role in the consumer segment products. As P&G was a popular company, the financials statement shows better performance in the previous year. Financial Statement Analysis is the process of reviewing and analyzing a company's financial statements to make better decisions. These statement includes the Income statement, Balance sheet, Statement of cash flows and a statement of changes in equity. There are 4 techniques used in Ratio Analysis: Horizontal ... Get more on HelpWriting.net ...
  • 22.
  • 23. Analysis Of Goodwill Impairments And Their Effects On... Analysis of Goodwill Impairments and Their Effects on Financial Statements The impairment–only accounting model for goodwill was initially brought to the table in 2004, to replace the previous amortization–based model. Over the years, research supported the idea that impairment charges improved the fundamental economic attributes of goodwill than systematic amortization charges. Research also revealed that such annual changes had minor information value to users. According to KPMG (2014), this was the key reason why the US Financial Accounting Standards Board (FASB) "replaced straight–line amortization of goodwill with this model that was based exclusively on impairment testing" (p. 4). The FASB argued that this approach provides ... Show more content on Helpwriting.net ... After the value is determined, if the goodwill's fair value is less than the carrying value, the goodwill is considered "impaired" and must be charged off. Essentially, the charge off reduces the value of goodwill to market value, reflecting a "mark–to–market" charge. Essentially, goodwill is the "value of an asset that is considered intangible but has a quantifiable prudent value in a business (Boundless, 2014)." An example of goodwill could be the reputation a firm has with its client. It is important to remember that although goodwill is technically an intangible asset, it typically is listed separately on a business balance sheet. Goodwill impairments under SFAS 142, has been the subject of many controversies. Opponents worry that specific aspects of the standard "are complicated and require judgment (Boundless, 2014). " Therefore, a goodwill impairment charge has the ability to increase the uncertainty of the analysts forecasting. Goodwill is recorded at the "time of a business combination by an acquiring entity, and is defined as the excess of the consideration transferred plus te fair value of any non– controlling interest in the acquire at the acquisition date over the fair values of the identifiable net assets acquired" (FASB, 2007). Prior to the SFAS 141 and SFAS 142, APB Opinion No.17 regulated accounting for goodwill (Chen, Krishnan, ... Get more on HelpWriting.net ...
  • 24.
  • 25. America Online, Financial statement analysis Financial statement analysis America Online, Inc. Case Study 1 1. Prior to 1995, why was America Online so successful in the commercial online industry relative to its competitors CompuServe and Prodigy? AOL offered a broad range of features including real–time talk, electronic mail, e–magazines and newspapers, online classes, shopping, and internet access. They also had software for the internet such as for production and distribution of original content, interactive marketing and transactions capabilities, and networks to support the transmission of data. In other words, AOL was a platform that connected the person with the need to internet access with the person who had the internet content by charging membership fees. ... Show more content on Helpwriting.net ... Considering the uncertainty in the subscription life, in order to provide more accurate report AOL should change its accounting policy and charge the subscriber acquisition cost to the period in which it is incurred. The company was not consistent with this point of view and actually increased the amortization period from 12–18 months to 24 months in 1995. AOL was too confident in its market strategy and retention ability and ignored the increased competition in the market. 5. What would be the effect on AOL's 1994 and 1995 ending balance sheets if the company had followed the policy of expensing subscriber acquisition outlays instead of capitalizing them? What would be the effect of expensing subscriber acquisition costs on AOL's 1995 income statement? If AOL expensed the subscriber acquisition outlays instead of capitalizing them, it removes these costs from the asset section on the balance sheets, which reduces the total assets. The shareholder's equity decreases as a result. If these costs were expensed, they would appear in the expense section on the income statement. Therefore, increasing the expenses and reduce the net income on the income ... Get more on HelpWriting.net ...
  • 26.
  • 27. Financial Statement Analysis Blackmores Introduction Blackmores,the leader of Australian pharmaceuticals with over 80–year history, keeps focusing on natural health care and becoming the first choice of the public. This essay will discuss the financial condition by analyzing the annual reports of Blackmores in the period from financial year 2010 to financial year 2012. It will be demonstrated by focusing on financial statements analysis, financial statements comments and comparison with Mcksson. Financial statement analysis Goals and ethical issues As the famous Australian pharmaceuticals, Blackmores sets its objectives as pursuing the leadership position of Australian natural health brands and improving people's lives by delivering the world's best natural health solutions ... Show more content on Helpwriting.net ... Sales took the most percentage of total revenue. The revenue of sales increased gradually from $ 214,934 (in thousands) in 2010 to $ 260,832 in 2012 while the figure of royalties reduced gradually from $ 873 in 2010 to $ 681 in 2012 (in thousands). The revenue of other income increased from $ 1,286 to $ 1,325 during this period and then the figure decreased dramatically to $ 533 in the financial year 2012. In addition, in the financial year 2012, a new resource of revenue called membership was developed with the figure of $54. The top four expenses of Blackmores in the three years were the cost of raw materials and consumables used, employee benefits expense, selling and marketing expenses and promotional and other rebates. All the four expenses increased gradually in the three years. The cost of raw materials and consumables used raise from $ 65,748 to $ 76,551 while employee benefits expense increased from $ 48,179 to $ 54,910. The costs of selling and marketing expenses and promotional and other rebates increased to$ 24,462 and $ 32,478 respectively from both around $ 19,000. According to the comprehensive income statements of Blackmores, the figures of net profit margin of the three years ... Get more on HelpWriting.net ...
  • 28.
  • 29. Key to Financial Reporting, Financial Statement Analysis... Chapter 1 An Overview of Financial Management and The Financial Environment ANSWERS TO END–OF–CHAPTER QUESTIONS 1–1 a. A proprietorship, or sole proprietorship, is a business owned by one individual. A partnership exists when two or more persons associate to conduct a business. In contrast, a corporation is a legal entity created by a state. The corporation is separate and distinct from its owners and managers. b. In a limited partnership, limited partners' liabilities, investment returns and control are limited, while general partners have unlimited liability and control. A limited liability partnership (LLP), sometimes called a limited liability company (LLC), combines the limited liability advantage of a corporation with the tax ... Show more content on Helpwriting.net ... U. S. interest rates must be competitive with foreign interest rates; if the Federal Reserve attempts to set interest rates lower than foreign rates, foreigners will sell U.S. bonds, decreasing bond prices, resulting in higher U. S. rates. Thus, if the trade deficit is large relative to the size of the overall economy, it may hinder the Fed's ability to combat a recession by lowering interest rates. 1–2 Sole proprietorship, partnership, and corporation are the three principal forms of business organization. The advantages of the first two include the ease and low cost of formation. The advantages of the corporation include limited liability, indefinite life, ease of ownership transfer, and access to capital markets. The disadvantages of a sole proprietorship are (1) difficulty in obtaining large sums of capital; (2) unlimited personal liability for business debts; and (3) limited life. The disadvantages of a partnership are (1) unlimited liability, (2) limited life, (3) difficulty of transferring ownership, and (4) difficulty of raising large amounts of capital. The disadvantages of a corporation are (1) double taxation of earnings and (2) requirements to file state and federal reports for registration, which are expensive, complex and timeconsuming. A firm's fundamental, or intrinsic, value is the present value of its free cash flows when discounted at the weighted average cost of capital. If ... Get more on HelpWriting.net ...
  • 30.
  • 31. Financial Statement Analysis Financial Statement Analysis April Cruz, Litesha Forbes, Phillip Gibson, Jessica Hewlett, Lily James, Velda Justin, and Nzingha Reel ACC/561 September 27, 2010 Mark Tischler Financial Statement Analysis The accounting information of this paper provides a financial statement analysis for three distinct companies: Mercedes Benz, a foreign manufacturer of vehicles; Macy's Inc, a retail department store, and American Airlines, an airline company. The analysis for each company includes the quick and current liquidity ratios, the DuPont ratio, profit margin, asset utilization, and financial leverage. Discussions in this paper include how the differences of each industry affect presentations as they relate to different ... Show more content on Helpwriting.net ... The IASB sets international principles underlying the preparation of financial statements. It represents the foundation of international accounting (IASB, 2010). The FASB is a private board that sets the standards for the United States. The FASB makes sure standards make information accessible and understandable for the public and investors in the U.S. They define fair values and framework for fair values in (GAAP) Generally Accepted Accounting Principles (FASB, 2010). The two boards are working on joining to form one common set of standards that will rule internationally. The merger is not formally completed but they are already working together to create new rules that affect presentations across–the–board, i.e. according to The Economist (2010), "businesses may have to start putting leases on their balance–sheets" (Business & Finance, para 1). This is an example of an across–the–board rule that would affect any industry that leases equipment, property, or any item, and they must record it to their liabilities column. Mercedes Benz currently follows the standards of International Financial Reporting Standards (IFRS) because it is a foreign owned company. These standards are more principle–based and require more judgment than American accountants are use to in their accounting procedures. The retail industry's current IFRS application practice is diversified (IFRS, 2010). Retailers in the industry follow IASB and FASB guidelines that cause
  • 32. ... Get more on HelpWriting.net ...
  • 33.
  • 34. The Implications Of Bank Specialization On Its Financial... When making a financial analysis on a bank, the type of business it conducts need to be considered. Specialization can lead a bank to operate in different practices and have a varied structure of their balance sheet. If the structure and composition of the bank is not to be considered, financial statement analysis will provide misleading information. This report will investigate the implications of bank specialization on its financial statement analysis. Specialization Larger banks specialize in customer deposits due to the larger availability of liquidity present as a result of economies of scale and synergy; small banks tend to specialize in customer loans. To fund these operations, small banks have a great level of liabilities relative ... Show more content on Helpwriting.net ... When comparing financial analysis of varying banks this can lead to asymmetric information7. Empirical studies show that specialization does not systematically carry across different sized banks, however the size of a bank is an important factor. Banks with subsidiaries tend to specialize in a unique way, the parent bank tends to specialize in numerous areas, their subsidiaries are structured to specialize in certain fields. For instance in Luxemburg, parent banks tend to specialize in interbank lending whilst their subsidiaries have seen interbank activities falling and an increase in customer loans. Facts such as this need to be considered for financial analysis.8 Size The size of the bank has a significant impact on its financial statement. Large banks have comparatively easy access to purchased funds and capital markets compared to small ones9. Large banks usually use more purchased 6 Banque Centrale du Luxembourg (2011) Changes in bank specialisation, Available at: http://www.bcl.lu/fr/publications/cahiers_etudes/67/BCLWP067.pdf (Accessed: 15th november 2015). 7 Center for Monetary and Financial Studies (2014) Comparative Advantadge and Specialisation in Bank Landing, Available at: http://www.cemfi.es/ftp/pdf/papers/wshop/specialization_102214.pdf (Accessed: 14th november 2015). 8 Ibid 6 9 Oliver G. Wood (1979) Analysis of bank financial statements, New York: Van Nostrand Reinhold Co.. funds (such as fed funds and RPs) ... Get more on HelpWriting.net ...
  • 35.
  • 36. Ratio Analysis : Analysis And Interpretation Of Financial... Ratio analysis is used to describe the important relationship that lies between figures based on line items in financial statements like the balance sheet, profit and loss account, and a budgetary control organization. Ratio analysis is a technique of analysis and interpretation of financial statements. It helps in evaluating the financial position and performance of the firm, ratio analysis also allows firms to compare their operational or financial performance to another firm or the industry standard. This essay will firstly discuss the purpose of financial ratios, its users and how it is applied. It will then move on to discuss the signification and limitations of ratio analysis. Furthermore, a discussion about the usefulness of specific ratios will be held using the 2013 annual report of easy jet. Lastly, my own views on the issues of financial statements, specifically financial ratios will be presented. With the help of financial statements that arise by the firm, analytical methods can be used to get information about the course of the business and the economic state. By calculating a small number of ratios it is possible to develop a clear picture of the position and performance of a firm (P.Atrill and E.Mclaney 2013). Financial ratios have two main users, management and inventors. Management uses financial ratios to analyse, control and determine the performance of their company. This will allow companies to improve in the areas where they are weak. On the other ... Get more on HelpWriting.net ...
  • 37.
  • 38. To What Extent Might the Cash Flow Statement Help to... To what extent might the cash flow statement help to overcome the traditional limitations of financial statement analysis in evaluating the past performance and predicting the future successes or failures of business organisations? Accounting is the major means of organizing and summarizing information about economic activities. The information which is provided by the accounting practices through financial statement analysis, provides help to decision makers to take decision. There are various forms of Accounting models which is of great help example if the financial statements for an organization is made statements like Balance Sheet, Profit and loss Account etc it helps the organization out to makes its stand in the market ... Show more content on Helpwriting.net ... This is a disadvantage of Ratio because it has to be depended on other figures when it is individual it represents nothing There are certain standard set which cannot became for organisation now this again deviates from one another for different organisation. Ratio is not calculated on a daily basis it is prepared as and when the income statement and balance sheet is prepared that takes palace annually. MODERN MEHTOD OF ANALYSING: CASH FLOW STATMENT Cash flow is one of the most vital elements in the survival of a business to include CFs in the annual report of the company is a recent concept. Complementing the balance sheet and income statement, the cash flow statement (CFS), its a mandatory part of a company 's financial repot, records the amounts of cash and equivalents entering and leaving a company. The CFS helps the investor to understand and figure out the position of the company from where the money comes and where the money is spent by an Survival of a business depends not only on profits but perhaps more on its ability to pay its debts when they fall due. Shareholders might believe that if a company makes a profit after tax , then this is the amount which it could afford to pay as a dividend. Unless the company has sufficient cash available to stay in business and also to pay a dividend, the shareholders ' expectations would be wrong. It can be positive, or negative, which is obviously ... Get more on HelpWriting.net ...
  • 39.
  • 40. Pro Forma Financial Statement Analysis Business 2204 Personal Finance Written Assignment #4 1. What financial tools describe in this chapter can help you make better financial decisions In this week chapter, we were introduced to another financial tool which is the Pro forma financial statement that provide a look the potential result of financial decision. Per AccountTools (2011, August 5) What Are Pro forma financial statement? Retrieved from http://www.accountingtools.com/question–and–answers/what–are–pro–forma–financial– statements.html a pro forma financial statements are the complete set of financial reports issued by an entity, incorporating assumption or hypothetical condition about events that may have occurred in the past or which may occur in the future. Pro forma financial ... Get more on HelpWriting.net ...
  • 41.
  • 42. A Financial Statement Analysis Project for Introductory... G lobal Perspectives on Accounting 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 to analyze trends in corporate performance, to evaluate corporate financial decisions, to discuss non–financial statement issues that would be important to potential investors, to compare two companies ... Show more content on Helpwriting.net ... The project in this paper, on the other hand, is much more in keeping with the recommendations of authors such as Kimmel (1995), who call for using cases which do not have unique solutions and which require students to formulate recommendations on the basis of incomplete information. The project included here has only six requirements, which are completely detailed on a single page. Yet, while the requirements provide a systematic framework for completion, they also are open–ended, inducing students to create analyses tailored to the particular circumstances encountered by the specific companies and specific industries being analyzed at a particular point in time. T 84
  • 43. A Financial Statement Analysis Project for Introductory Financial Accounting 85 PROJECT OVERVIEW Project Requirements As may be seen in the assignment sheet included in Appendix 1, the project requires students to obtain annual reports for two companies in a given industry–one to serve as the "base company" and one to serve as the "comparison company." Then, students are required to analyze key trends in the base company's income statement and balance sheet ... Get more on HelpWriting.net ...
  • 44.
  • 45. Financial Statement Analysis Page – 1 of 24 Financial Statement Analysis. Abstract Financial Statements are summaries of monetary data about an enterprise. Hence Financial Statement Analysis will help one to assess the Viability, Stability, Profitability and Liquidity of an enterprise. In this Assignment, an attempt, to analyze the financial performance of two companies in Textile Industry (S.Kumar Nationwide Ltd. & Gokaldas Export Ltd.) has been made. As the result of this assignment I found the performances of S.Kumar Nationwide Ltd. is better than Gokaldas Export Ltd. Introduction Financial statement analysis is a technique of answering various questions regarding the performance of the firm in the past, present and future. So in this assignment we have ... Show more content on Helpwriting.net ... Selecting Benchmark Firm There are many leading companies in textile industry however many of them are also involved in other industries. I have selected the below companies which have textile as more than 90% of the Turnover. Table Showing – Comparison On Peer Group Firms Name Of The Firm S.Kumars Nationwide Ltd. Maxwell Industries Ltd. Malwa Cotton Spinning Mills Ltd. Gokaldas Exports Ltd. Loyal Textiles Mills Ltd. Siyaram Silk Mills Ltd 2010 Sales in crores 1,550.19 211.39 458.90 1,093.40 424.06 647.87 Table – A1 Net Profit 60.09 7.02 –43.72 3.37 – 14.13 11.44 Profit % 3.88 3.32 –9.53 0.31 –3.33 1.77 I have selected Gokaldas Exports Ltd. From the above 5 firms that I considered to compare with the main firm. The first factor that I considered was Gokaldas Exports Ltd's Sales is near to the main Firm when compared to the other firms. However I was not compromised to their profit percentage so I also considered their pervious performers comparing with S.Kumars Nationwide Ltd. for past 5 years to justify my selection. Please find the comparison in next page. Page – 4 of 24 Table Showing – Comparing Profit % For Five Years Year 2009 2008 2007 2006 2005 S.Kumars Nationwide Ltd. Total Sales Net Profit Profit % 1550.23 1605.72 1229.54 889.73 344.53 60.09 178.13 107.47 99.78 9.15 3.88 11.09 8.74 11.21 2.66 Table – A2 Gokaldas Exports Ltd. Total Sales Net Profit Profit % 1,093.40 1,002.57 999.81 ... Get more on HelpWriting.net ...
  • 46.
  • 47. Financial Statement Analysis : Financial Assessment And... INTRODUCTION Different segments of the general public are keen on data about the present budgetary positions and future prospects of business undertakings. Presently the people perhaps straightforwardly identified with the enterprise, or they may be keen on securing relations with the same instantly. Their essential target is to choose whether they will keep up, reinforce, or break their current relations with the business undertakings. Various proclamations readied toward the end of each bookkeeping period to survey Financial Activities and Financial position of a worry are altogether called Financial Statements. They consist of the following: Income Statement Balance Sheet Cash Flow Statement Fund Flow Statement On the premise of the data uncovered in Financial Statements, clients of these come to think about the development, productivity, dissolvability, and monetary quality of an undertaking. Monetary Statement Analysis is an investigation which discriminatingly looks at the relationship between different components of the Financial Statements with a perspective to acquire vital and compelling data from these. It a methodology of filtering Financial Statements for assessing the relationship between the things as revealed in these. It is fundamentally a posthumous of the value– based exercises of a venture as unveiled in the Financial Statements in order to judge operational capacity, capacity, gainfulness, dissolvability, managerial effectiveness and ... Get more on HelpWriting.net ...
  • 48.
  • 49. Discuss The Four Basic Financial Statement Analysis... List four basic financial statement analysis procedures, describe how you would calculate each procedure and discuss why you would use each procedure. Based on your reading and outside research, please communicate your own understanding of the requirements. Citations and references are required. The use of financial statements is to provide individuals, but not a specific group with compressed financial data showing them the information that pertains to the decision they want to make. They are also able to see past performance of their company and comparing corporation that is in the same industry (Edmonds, Tsay, & Olds, 2011). The most basic analytical techniques, vertical, horizontal and ratio analyses provide financial investigators ... Get more on HelpWriting.net ...
  • 50.
  • 51. Analysis of Financial Statement CFIN4 ANALYSIS OF FINANCIAL STATEMENTS 1/21/15 CHAPTER 2 1 1. 2. Describe the basic financial information that is produced by corporations and explain how the firm's stakeholders use such information. Describe the financial statements that corporations publish and the information that each statement provides. 2 © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password–protected website for classroom use. LEARNING OUTCOMES 3. 4. Describe how ratio analysis should be conducted and why the results of such an analysis are important to both managers and investors. ... Show more content on Helpwriting.net ... All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password– protected website for classroom use. UNILATE TEXTILES
  • 52.  Presents the results of business operations during a specified period of time  Summarizes the revenues generated and the expenses incurred 11 © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password–protected website for classroom use. THE INCOME STATEMENT YEARS ENDING DEC. 31 ($ millions, except per share data) © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password–protected website for classroom use. UNILATE TEXTILES: INCOME STATEMENTS 12  Designed to show how the firm's operations have affected its cash position  Examines investment decisions (uses of cash)  Examines financing decisions (sources of cash) 13 © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in ... Get more on HelpWriting.net ...
  • 53.
  • 54. Financial Statements And Financial Statement Analysis Essay CHAPTER TWO LITERATURE REVIEW INTRODUCTION Financial statements are usually means of communicating information on a company's operations. They contain information on the revenues, expenses, assets, liabilities and retained earnings of the business. 2.2 FINANCIAL STATEMENT ANALYSIS According to Drake (2010), financial statement analysis is the selection, evaluation, and interpretation of financial data, along with other pertinent information, to assist in investment and financial decision–making. Moreover, it is also the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. Brigham, E., & Houston, J. (2007), "Financial statements report both a firm's position at a point in time and its operations over some past period. However, their real value lies in the fact that they can be used to help predict future earnings and dividends". Financial ratios are designed to help one evaluate a financial statement. Ffigures derived from the published annual financial statements and accounts of the companies are used to produce values that interpret financial meaning. Organizations regularly evaluate their financial statements by means of ratios and compare the values to those of similar entities or analyze their firm's financial ratios over time (trend analysis) to show weaknesses or opportunities for improvement as it is critically important for decision ... Get more on HelpWriting.net ...
  • 55.
  • 56. Financial statement analysis and report ACFI 1001 Accounting for Decision Makers – Individual Project (15%) Financial Statement Analysis and Report Objectives Apply theory in practice Conduct analysis of financial statement – to look beyond the numbers Experience formal report writing. REQUIRED: Written report (a soft copy on blackboard via turnitin and printed copy to tutors is compulsory) 1. Obtain the most recent annual report for two companies in any of the industries on the Australian Stock Market (for example, mining, retail, manufacturing, construction, service, transport). The reports should contain at least three years of income statement data and two years of balance sheet data. Use one of the chosen companies as your 'base company' and the other ... Show more content on Helpwriting.net ... 11.25 – 12.75 marks: The paper generally is well written but may have minor grammatical or other writing errors or lack smooth transitions. The report addresses the issues specified in the requirements, demonstrates understanding, and focuses mainly on important items, but does not fully synthesize the material being discussed, and/or does not integrate the annual report data with the narrative. 9.75 – 11.25 marks: The paper does not have excessive grammatical or other writing errors. The report addresses the issues specified in the requirements, but demonstrates only moderate understanding, and/or lacks integration. 7.5 – 9.75 marks: The paper does not have excessive grammatical or other writing errors. The report addresses the issues specified in the requirements but demonstrates only minimal understanding of one or more of the issues. 0 – 7.5 marks: The paper fails to meet the basic requirements, has excessive composition errors, and/or fails to demonstrate understanding of the requirements.
  • 57. Guide to understand and find annual report of companies: Most public companies have made their annual reports available at company websites. A company 's annual reports are often located under the Investor Information section at the company website. You can use the Company Search http://www.asx.com.au/research/company–research.htm function to find the Internet addresses and other details of Australian companies listed on ... Get more on HelpWriting.net ...
  • 58.
  • 59. Financial Statement Analysis And Ratios Chapter 17 covers the financial statement analysis and ratios. Financial statement analysis is the process of examining financial statements that will depict the financial position of the company allowing them to make better financial decisions. A typical financial statement consist of a balance sheet, income statement, cash flow statement and notes to account. The most common being the balance sheet and the income statement. The balance sheet, also referred to as a statement of financial positon, is usually made up of assets and liabilities and provides information about the financial position of the company. It is a two sided report, assets on one side, and liabilities on the other. Liabilities typically include accounts payable, accrues expenses, income tax owed, stockholders' equity (net worth), and loans. The income statement, also referred to the earning and loss statement, depicts the profitability of the company. It shows to total sales revenue for one year. The expenses the company incurs in producing finished good to sell is subtracted from the sales revenue. Also deducted is the operating cost expenses and the deprecation. When analyzing the income statement, it is important to note that the profitability isn't just the total profit. It is important to look at the ratio of expenses as a percentage of profit. A company with high profits and high expenses could easily be mismanaged. However, balance sheets and income statements have little meaning by ... Get more on HelpWriting.net ...
  • 60.
  • 61. Hrm 531 Week 2 Financial Statement Analysis Memo To: John Doe From: Team C Date: February 20, 2012 Subject: Auditing, share–based payment and SPE reporting A publically traded company offers challenges to auditing when it comes to shared–based payment reporting and special–purpose entities (SPE) reporting individually. The most basic principle of GAAP at risk is the qualitative characteristic of reliability. Shared–based payment and SPE reporting individually has been broken down to better equip the audit for our client. It is important to notice that Special Purpose Entities should be carefully reviewed by each member of the auditing team. Even more after it was proven that most of Enron's fraudulent accounting practices involved SPE. SPE allows companies to reduce their ... Show more content on Helpwriting.net ... SPE Reporting Individually A special purpose entity (SPE) is a business interest formed in order to perform a specific task or tasks. SPE's are also referred to as off–balance sheet arrangements. SPE's are formed to 1). Finance certain assets or services and keeping the associated debt off the balance sheet of the sponsors, 2).Transform certain financial assets, such as trade receivables, loans, or mortgages, into liquid securities, and 3). Engage in tax–free exchanges (Saroosh, 2004). Most of the SPE's in the U.S. have been organized as limited liability corporations (LLC). A trust is also a common SPE in the U.S. US GAAP has two models for off–balance sheet treatment of SPEs – one addressing de–recognition of assets and the second dealing with consolidation of variable interest entities. Initially accounting treatment for SPE's was established by FAS 140. Until 2010, de–recognition of assets were governed by FAS 140, according to Basel Committee (2009). In order to be de–recognized, assets must be isolated from the transferor and put beyond the reach of creditors and receivers. This standard is commonly referred to as meeting "true sale" criteria. To qualify as a true sale; the transferor must surrender effective control over the ... Get more on HelpWriting.net ...
  • 62.
  • 63. Financial Statement Analysis Of Amazon.com, Inc. Financial Statement Analysis AMAZON.COM, INC. History Incorporated in 1994 and launched in 1995 as an online bookstore, Amazon.com was founded by Jeff Bezos with a vision of creating "the everything store" (Stone, 2013) and the largest of its kind; hence, it was named after the largest river in the world (D'Onfro, 2014). In 1997, Amazon announced IPO and trading began on NASDAQ under "AMZN". That same year, Amazon sold to its one–millionth customer copies of a Windows NT manual and The Royals, Kitty Kelley's biography of the British Royal family, hand–delivered to Japan by founder Jeff Bezos. Since 1998, Amazon has started expanding and opened its doors to international trading by launching its first international websites: Amazon.co.uk (UK) and Amazon.de (Germany). In 2000, Amazon publicly showed its intention of selling all goods by adding a curved arrow from A to z on the company logo (Hayes, 2015). That same year, Amazon Marketplace allowed third party sellers (individuals and companies) to sell new and used products on the Amazon platform. By 2001, Amazon finally earned a quarterly profit of $5 million on revenues of over $1 billion. In 2005, Amazon launches Amazon Prime, a membership that gives faster deliveries and access to Amazon's film and tv streaming service, of which Google chairman, Eric Schmidt, is a member (Stone, 2013). In 2007, Amazon Kindle e–book reader was launched and as of 2014, there are 2.5 million e–book titles available (Hayes, 2015). ... Get more on HelpWriting.net ...
  • 64.
  • 65. The Analysis Of Financial Statements The analysis of financial statements is the critical process that is aimed at assessing the present and past financial position and the results of operations that are carried out in a company. The primary objective of this analysis is to establish the best possible estimates and predictions about future results and conditions that the company can reach. It is based on two primary pieces of knowledge, where the first is the in–depth knowledge of the accounting model and the second would be the domain of the tools used for the financial analysis, which enables the identification and analysis of the relationship between financial and operational factors. For that reason, the financial analysis is a working tool widely used by the directors ... Show more content on Helpwriting.net ... A viable alternative to solve this problem is based on providing the company the analytical tools necessary to include indicators of liquidity, solvency, and profitability, but also serve as support for the process of administrative decisions of the enterprise. A company's financial information will assess the operation of the business and provide the real financial condition of the entity as well as the efficiency of the management. The financial statements of a company facilitate efficient and effective decision making. The financial analysis of a corporation helps assess the financial growth of the enterprise. Effective decision making leads to proper management of company resources. BUSINESS ANALYSIS Unfortunately, the company does not have an efficient financial model that can provide the financial information needed to measure its economic indicators. Currently, the company only has some accounting reports, provided by the accounting department of the enterprise, such as purchase and ... Get more on HelpWriting.net ...
  • 66.
  • 67. Financial Analysis On Financial Statements Firm Performance: A Review of Financial Statements Financial crises like dot–com bubble in the late 1990s and the housing market crash in the late 2000s prompted investors, and firms, to reconsider the criticality of financial discipline. Transparency would be necessary to entice investors to spend money again, thus a firm's financial statements became their marketing tools. These examples reinforce the importance of financial statements' relation to the financial wellbeing of a company. This paper serves as a report on the purpose and aspects of the various financial statements and their applicability to the performance of a firm. Income Statements Income statements, also known as profit–and–loss statements, are one of the core financial statements publicly held firms must present annually. Serving as the officially documented representation of company expenses and revenues over a set duration, the income statement is often used to assess the performance and profitability of a company (Alvis, n.d.). The key expense items included on an income statement are: general and administrative expenses (G&A), research and development expenses, depreciation/amortization, and cost of revenue (Alphabet, 2014). The crucial importance behind the income statement lies in its ability to lay out the relevant facts in a simplistic manner. By reviewing a company's income statement, one can instantaneously ascertain the financial productivity of a company and their current ... Get more on HelpWriting.net ...
  • 68.
  • 69. Financial Statement Analysis and Financial Forecasting Financial Statement Analysis and Financial Forecasting 4.1 Introduction. The lesson will consist of basic financial statements, its relevancy, reliability and quality as a basis for making decisions. Focus on the decision–making role of accounting system has to be elaborated. Also ratio analysis as decision tool with forecasting models is discussed. The basis concept of preparation of financial statement and its usefulness is included with ratio analysis. Cash flow analysis and financial planning with forecasted financial statement are covered. 4.2 Source of Financial Information. Accounting is the guide–post for management. A firm should know the financial implications of its operations. The financial score of the firm is kept by ... Show more content on Helpwriting.net ... Measures assets and liabilities in monetary units and in accordance with cost principles. Communicates information about assets (resources), liabilities (out side claims), and owners' equity. 4.3.4 Profit and Loss Account (Income Statement). Income statement is considered as a very significant statement, with more attention to the firm's earning capacity as a measure of its financial strength. The earning capacity and potential of a firm is reflected by its income statement. The generally accepted convention is to show one year's events in income statement. Since the income statement reflects the results of operations for a period of time, it is a flow statement. The income statement presents the summery of revenues, expenses and net income of a firm. It serves as a measure of the firm's profitability. Revenues are amounts which the customers pay to the firm for providing them goods and services. The firm uses economic resources in providing goods CDCE Page 2 and services to customers. The cost of the economic resources used to earn revenues during a period of time called expenses. Thus, to determine net income, the accounting system matches expenses incurred during the accounting period against revenues earned during that period. The matching of expenses with revenue is called matching ... Get more on HelpWriting.net ...
  • 70.
  • 71. Common Methods Of Financial Statement Analysis Financial statement analysis is used to identify the trends and relationships between financial statement items. Both internal management and external users (such as analysts, creditors, and investors) of the financial statements need to evaluate a company's profitability, liquidity, and solvency. The most common methods used for financial statement analysis are trend analysis, common‐size statements, and ratio analysis. These methods include calculations and comparisons of the results to historical company data, competitors, or industry averages to determine the relative strength and performance of the company being analyzed. A branch of economics concerned with resource allocation as well as resource management, acquisition, and investment. Simply Finance deals with related to money and the markets. To raise money through the issuance and sale of debt and equity. It is observed that while considering the firm performance, the profit and wealth maximization are liked and effected by one another. A company's financial performance therefore is normally ... Show more content on Helpwriting.net ... These statements allow analysts to measure liquidity, profitability, company–wide efficiency and cash flow. There are three main types of financial statements: the balance sheet, income statement and cash flow statement. The balance sheet is a snapshot in time of the company's assets, liabilities and shareholders' equity. Analysts use the balance sheet to analyze trends in assets and debts. The income statement begins with sales and ends with net income. It also provides analysts with gross profit, operating profit and net profit. Each of these is divided by sales to determine gross profit margin, operating profit margin and net profit margin. The cash flow statement provides an overview of the company's cash flows from operating activities, investing activities and financing ... Get more on HelpWriting.net ...
  • 72.
  • 73. Let 's Talk About Financial Statement Analysis Let's talk about Financial Statement Analysis is the process of reviewing and analyzing a company's financial statements to make better decisions. When you are dealing with financial statement analysis you will be looking at income statement, balance sheet, statement of cash flows, and a statement of retained earnings. The larger field of business analysis is very significant and essential. Forecasts and jeopardy are part of the process in business analysis. Most business will make sure they have a business analysis due to it is very useful in business decisions. Debt securities and equity is a wide range of business analysis to make very important business decisions. In your business you want to spread your credit through short or ... Show more content on Helpwriting.net ... Helping organizing business task through business analysis through evaluation of company's business environment, its strategies, and its financial position and performance. I would begin by evaluating a company business environment and strategies. We start by learning the company's business accomplishments and learn that it is a top global consumer product company. We are trying to see if the company have worldwide accepted brands that are mainly in the oral, personal, and home care arcades. FINANCIAL STATEMENT ANALYSIS 4 Ensure you have worthy supporters to loan funds to your company in return for a potential of repayment with interest. So you know this type of financing is momentary since supporters want repayment of their funds with interest. Creditors are all about making money in the course of helping you out with your industry. Creditors have different ways to loan treasuries in many forms and for a variation of tenacities. Supporters will work with you to make sure which is right for your business. If you decide to organize trade then functioning creditors will transport goods and services to a firm and expect payment within a sensible period, often stubborn by industry norms. Some trade credit is petite term, vacillating from 30 to 60 days, with cash discounts often settled for speedy payment. Skill creditors usually do not receive interest for a ... Get more on HelpWriting.net ...
  • 74.
  • 75. Apple's Financial Statement Analysis APPLE COMPUTER COMPANY Financial Statement Analysis Project Table of Contents Part I .....................................................................3 Part II .....................................................................5 Part III ....................................................................6 Part IV ....................................................................7 Part V ......................................................................8 Part VI ...................................................................10 Part VII ..................................................................11 Appendices ...............................................................12 Appendices AAPL 5 Year Balance Sheet Report...........................................12 5 Year Income Statement................................................13 5 Year Cash Flow Statement............................................14 Asustek Computer Inc 5 Year Balance Sheet Report...........................................15 5 Year Income Statement................................................16 5 Year Cash Flow Statement............................................17 Cisco Systems Inc 5 Year Balance Sheet ... Show more content on Helpwriting.net ... Asustek Computer Inc operates in Semiconductors industry. The Group 's principal activities are designing, manufacturing and selling computer products and other electronic products. Products include computer motherboards, computer software, supplemental and upgrading cards, optical instruments, wired and wireless telecommunication apparatus. Operations are carried out in Taiwan, Asia Pacific and other countries. The Group exports its products to Canada, Asia Pacific, the United States of America, Europe and South Africa. Cisco Systems Inc operates in Telecommunications Equipment industry. The Group 's principal activities are to design, manufacture and sell Internet Protocol (IP)–based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The
  • 76. Group 's products are installed at enterprise businesses, public institutions, telecommunications companies, commercial businesses and personal residences. The Group offers its products in five categories: Switches, Advanced Technologies, Routers, Service, and Other. Its service offerings include technical support services and advanced services. It operates in the United States, Canada, European Markets, Eastern Europe, Latin America, the Middle East and Africa, Russia, Asia Pacific and Japan. During Fiscal 2009, the Group acquired PostPath, Inc., Pure ... Get more on HelpWriting.net ...
  • 77.
  • 78. Financial Statement Analysis Chapter 2 Introduction to Financial Statement Analysis 2–1. What are the four main financial statements? What checks are there on the accuracy of these statements? The four financial statements are: the balance sheet, the income statement, the statement of cash flows, and the statement of changes in shareholders' equity. Financial are required to be audited by a neutral third party, who checks and ensures that the financial statements are prepared according to GAAP or accounting standards and that the information contained is reliable. 2–2. Who reads financial statements? List at least three different categories of user. For each category, provide an example of the type of information they might be interested in and ... Show more content on Helpwriting.net ... 2–5. What was the change in Nokia's book value of equity from 2006 to 2007 according to Table 2.1? Does this imply that the market price of Nokia's shares increased in 2007? Explain. Nokia's book value of equity increased by €5,278 million from 2006 to 2007. An increase in book value does not necessarily indicate an increase in Nokia's share price. The market value of a share does not depend on the historical cost of the firm's assets, but on investors' expectation of the firm's future performance. There are many events that may affect Nokia's future profitability, and hence its share price, that do not show up on the balance sheet. 2–6. Use EDGAR to find Qualcomm's 10K filing for 2009. From the balance sheet, answer the following questions: a. How much did Qualcomm have in cash and short–term investments? b. What were Qualcomm's total accounts receivable? c. What were Qualcomm's total assets? d. What were Qualcomm's total liabilities? How much of this was long–term debt? e. What was the book value of Qualcomm's equity?
  • 79. a. $2,717 million (cash) and $8,352 million (short–term investments/marketable securities) for a total of $11,069 million b. $700 million c. $27,445 million d. 7,129 million, nothing e. $20,316 million 2–7. Find online the annual report of Cadbury from www.cadburyinvestors.com for 2007. Answer the following questions from their balance ... Get more on HelpWriting.net ...
  • 80.
  • 81. Financial Statement Analysis : Australian Vintage Ltd FINANCIAL STATEMENT ANALYSIS ANALYSIS OF PREPARED BY: MALIK JAMSHAIN ANJUM STUDENT ID: 151MAM5012 TABLE OF CONENTS: INTRODUCTION. COMPANY PROFILE SWOT ANALYSIS. INTERNAL AND EXTERNAL FINANCIAL PERFORMANCE: RATIO ANALYSIS 1. PROFITABILITY 2. LIQUIDITY 3. EQUITY 4. VALUATION 5. COMPANY PROFILE: AUSTRALIAN VINTAGE LTD details Winemaking, wine marketing and vineyard management Issuer code AVG Official listing date 26/03/1992 GICS industry group Food, Beverage & Tobacco Exempt foreign? No Internet address http://www.australianvintage.com.au Registered office address 275 Sir Donald Bradman Drive, COWANDILLA, SA, AUSTRALIA, 5033 Head office telephone 08 8172 8333 Head office fax 08 8172 8399 Share registry COMPUTERSHARE INVESTOR SERVICES PTY LIMITED LEVEL 5, 115 GRENFELL STREET, ADELAIDE, SA, AUSTRALIA, 5000 Share registry telephone 1300 787 272 Directors/Senior management:
  • 82. Mr Ian D Ferrier Chairman, Director Mr Neil McGuigan CEO, Executive Director Mr Richard Davis Director Mr Perry R Gunner Director Mr Brian J McGuigan Director Mr Mike Noack CFO Company secretary: Mr Mike Noack Company Secretary Australian Vintage Limited is a leading Australian wine company. Championing a fully–integrated wine business model, the breadth of our capabilities extends to vineyards, boutique and bulk wine production, packaging, marketing and distribution. As one of the largest vineyard owners and managers in Australia, Australian Vintage ... Get more on HelpWriting.net ...
  • 83.
  • 84. Financial Statement Analysis MODULE 10 FINANCIAL STATEMENT ANALYSIS THEORIES: 6. Management is a user of financial analysis. Which of the following comments does not represent a fair statement as to the management perspective? A. Management is always interested in maximum profitability. B. Management is interested in the view of investors. C. Management is interested in the financial structure of the entity. D. Management is interested in the asset structure of the entity. Limitations 1. A limitation in calculating ratios in financial statement analysis is that A. it requires a calculator. B. no one other than the management would be interested in them. C. some account balances may reflect atypical data at year end. D. they ... Show more content on Helpwriting.net ... vertical analysis C. profitability analysis B. solvency analysis D. horizontal analysis 11. Horizontal analysis is also known as A. linear analysis. C. trend analysis. B. vertical analysis. D. common size analysis. 13. In which of the following cases may a percentage change be computed? A. The trend of the amounts is decreasing but all amounts are positive. B. There is no amount in the base year. C. There is a negative amount in the base year and a negative amount in the subsequent year. D. There is a negative amount in the base year and a positive amount in the subsequent year. 14. Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time A. that has been arranged from the highest number to the lowest number. B. that has been arranged from the lowest number to the highest number. C. to determine which items are in error. D. to determine the amount and/or percentage increase or decrease that has taken place. Trend analysis 16. Trend analysis allows a firm to compare its performance to: A. other firms in the industry C. other industries B. other time periods within the firm D. none of the above Risk and return 29. The present and prospective stockholders are primarily concerned with a firm' A. profitability C. leverage B. liquidity D. risk and ... Get more on HelpWriting.net ...