Chap003

Financial Statements Analysis and Long-Term Planning

Accounting as an Information System

Chapter Outline ,[object Object],[object Object],[object Object],[object Object]

3.1 Financial Statements Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

3.2 Ratio Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Categories of Financial Ratios ,[object Object],[object Object],[object Object],[object Object],[object Object]

Payables Turnover ,[object Object],Payables Turnover = Net Purchases Average Accounts Payable

Days’ Payable ,[object Object],Days’ Payable = Payables Turnover 365 days

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object]

Liquidity of Inventory ,[object Object],[object Object],[object Object],[object Object]

3.3 The Du Pont Identity ,[object Object],[object Object],[object Object]

Using the Du Pont Identity ,[object Object],[object Object],[object Object],[object Object]

3.4 Using Financial Statements ,[object Object],[object Object],[object Object],[object Object],[object Object]

Potential Problems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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