29 Jun Question RATIO ANALYSIS Ratio analysisexpresses the relationship am
Question
RATIO ANALYSIS
Ratio analysisexpresses the relationship among selected items of financial statement data. A ratioexpresses the mathematical relationship between one quantity and another. For analysis of the primary financial statements, we classify ratios as follows.
Illustration 2-9
Financial ratio classifications
A single ratio by itself is not very meaningful. Accordingly, in this and the following chapters, we will use various comparisons to shed light on company performance:
.gif”>
.gif”>
1.
Intracompany comparisons covering two years for the same company.
2.
Industry-average comparisons based on average ratios for particular industries.
3.
Intercompany comparisons based on comparisons with a competitor in the same industry
Question 1
Using these data from the comparative balance sheet of Rosalez Company, perform horizontal analysis.(If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 0 decimal places, e.g. 12%.)
Increase or (Decrease)
Dec. 31, 2012
Dec. 31, 2011
Amount
Percentage
Accounts receivable
$ 545,500
$ 393,400
$
%
Inventory
$ 820,400
$ 604,600
$
%
Total assets
$3,146,500
$2,742,100
$
%
Question 2
Using these data from the comparative balance sheet of Rosalez Company, perform vertical analysis.(Round percentages to 1 decimal place, e.g. 12.5%.)
Dec. 31, 2012
Dec. 31, 2011
Amount
Percentage
Amount
Percentage
Accounts receivable
$ 543,900
%
$ 417,700
%
Inventory
$ 821,700
%
$ 617,000
%
Total assets
$3,175,700
%
$2,787,300
%
Question 3
Vertical analysis (common-size) percentages for Vallejo Company’s sales, cost of goods sold, and expenses are listed here.
Vertical Analysis
2012
2011
2010
Sales
100
%
100
%
100
%
Cost of goods sold
60.8
63.8
66.4
Expenses
24.7
27.8
28.8
Did Vallejo’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.
Question 4
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.