Lecture Financial accounting (15/e) - Chapter 14: Financial statement analysis

Financial Statement Analysis Chapter 14 PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA McGraw-Hill/Irwin Copyright©2012TheMcGraw-Hill Companies,Inc. Financial Statements Are Designed for Analysis C la s s ifie d C o m p a ra tiv e C o n s o lid a te d F in a n c ia l F in a n c ia l F in a n c ia l S ta te m e n ts S ta te m e n ts S ta te m e n ts Ite m s w ith c e r ta in c h a r a c te r is tic s a re g r o u p e d to g e th e r. A m o u n ts fr o m s e v e r a l y e a rs a p p e a r s id e b y s id e . In fo rm a tio n fo r th e p a r e n t a n d s u b s id ia ry a re p re s e n te d . R e s u lts in s ta n d a r d iz e d , m e a n in g fu l s u b to ta ls . H e lp s id e n tify s ig n ific a n t c h a n g e s a n d tr e n d s . P re s e n te d a s if th e tw o c o m p a n ie s a re a s in g le b u s in e s s u n it. 14­2 Tools ofAnalysis Dollar & Percentage Changes Component Percentages Trend Percentages Ratios 14­3 Dollar and Percentage Changes Dollar Change: Dollar Change = Analysis Period Amount – Base Period Amount Percentage Change: Percent Change = Dollar Change ÷ Base Period Amount 14­4 Dollar and Percentage Changes Evaluating Percentage Changes in Sales and Earnings Sales and earnings should increase at more than the rate of inflation. In measuring quarterly changes, compare to the same quarter in the previous year. Percentages may be misleading when the base amount is small. 14­5 ... - tailieumienphi.vn