Financial Accounting: An Integrated Statements Approach, 2nd Edition

Financial Statement Analysis

CHAPTER OUTLINE LEARNING GOALS IN-TEXT EXERCISES AND PROBLEMS

Horizontal and Vertical Analyses

• Horizontal Analysis


• Vertical Analysis


• Common-Size Statements


• Other Analytical Measures

Learning Goal 1: Construct and

interpret horizontal and vertical

analyses.

Exercises

14-1 (spreadsheet), 14-2 (spreadsheet),

14-3 (spreadsheet), 14-4 (spreadsheet),

14-5 (spreadsheet)

Accounting Application Problems

14-1A, 14-2A, 14-1B (spreadsheet),

14-2B (spreadsheet)

Profitability Analysis

• Rate Earned on Stockholders’ Equity


• Rate Earned on Total Assets


• Comprehensive Profitability Analysis

Learning Goal 2:Calculate and inter-

pret the rate earned on stockholders’

equity and the rate earned on total

assets.

Exercises

14-6, 14-7, 14-8, 14-29

Accounting Application Problems

14-4A (spreadsheet) 14-5A, 14-4B

(spreadsheet), 14-5B

Margin Analysis and

Asset Efficiency Analysis

• Margin Analysis


• Asset Efficiency


• Accounts Receivable Analysis


• Inventory Analysis


• Fixed Asset Analysis


• Asset Efficiency Summary

Learning Goal 3: Analyze the rate

earned on total assets by evaluating

the profit margin and the asset

efficiency of a business.

Exercises

14-9, 14-10, 14-11, 14-12, 14-13,

14-14, 14-15, 14-16

Accounting Application Problems

14-4A (spreadsheet), 14-5A, 14-4B

(spreadsheet), 14-5B

Leverage Analysis

• Current Ratio


• Quick Ratio


• Ratio of Fixed Assets
  to Long-Term Liabilities


• Ratio of Liabilities to
  Stockholders’ Equity


• Number of Times Interest
  Charges Earned


• Leverage Summary

Learning Goal 4: Determine and

interpret leverage.

Exercises

14-17, 14-18, 14-19, 14-20,

14-21, 14-22, 14-23, 14-28, 14-29

Accounting Application Problems

14-3A (spreadsheet), 14-4A

(spreadsheet), 14-3B (spreadsheet),

14-4B (spreadsheet)

Stockholder Ratios

• Earnings per Share


• Price-Earnings Ratio


• Dividend Yield

Learning Goal 5:Calculate and

interpret shareholder ratios: earnings

per share, price-earnings ratio, and

dividend yield.

Exercises

14-24, 14-25, 14-26, 14-27, 14-28

Accounting Application Problems

14-4A (spreadsheet), 14-4B

(spreadsheet)

Summary of Analytical Measures Learning Goal 6: Summarize the uses

and limitations of analytical measures.

Corporate Annual Reports

• Management Discussion
  and Analysis


• Report on Adequacy of
  Internal Control


• Report on Fairness of
  Financial Statements

Learning Goal 7: Describe the contents

of corporate annual reports.

14 chapter