This website uses cookies to ensure you have the best experience. Learn more

Horizontal, Vertical, Ratio Checkpoint Essay

376 words - 2 pages

ointThe three tools of financial statement analysis and functions are the horizontal, vertical, and ratio analysis. The horizontal ratio also called the trend ratio, evaluates financial statements and data over a certain period of time. It is mainly used in intra- company comparisons. The purpose of this is to determine the decrease or increase that took place. The vertical analysis also called the common- size analysis, evaluates the financial statement data by expressing each item as a base amount or a percentage in the ...view middle of the document...

For 2005 it’s the same scenario divide the current assets $10454 by $9406, (total liabilities) equal to 1.11%
The two measures of vertical analysis is current assets or $10,454
$31,727 = 33% (Divide the two to get this amount.)
The two measures of horizontal analyses are current assets in 2005- $10,454 Divided by Current assets in 2004- $8,639 = 121% or a 21% increase from 2004 to 2005.
Current liabilities in 2005 are $9,406. Divide that by current liabilities in 2004 or $6752 which equals 139% or 39% increase from 04 to 05.
For the Coca-Cola Co, to get the current ratio you divide the current assets by the current liabilities. For 2004 $12,281 divided by $11,133 is equal to 1.10%
For 2005 you divide (Current Assets) $10,250 by (Current Liabilities) 9,836 to get 1.04%
Two measures of vertical analysis is (Current Assets) $10,250 divided by (Total Assets) $29,427 which is equal to 34.8%
The two measures of horizontal analysis is (Current Assets- 05) $10,250 divided by (Current Assets- 04) $12,281 which equals 83.5% or a 16.5% decrease from 2004 to 2005.
Current liabilities in 2005 are $9,836 divide this by current liabilities in 2004 of $11,133 to get 88.4% or a decrease of 11.6% from 2004 to 2005.

Other assignments on Horizontal, Vertical, Ratio Checkpoint

Week 5 Reflection Summary Essay

401 words - 2 pages pertaining to the weekly reading assignment and some that are different. Some of the topics we discussed were how to apply ratio, vertical, and horizontal analyses to financial statement; and also, how to distinguish common stock and preferred stock and, how Corporations issue stocks in accordance with their Articles of Incorporation. Team A agreed that these topics were more clearly and easy to understand. We all were comfortable and ready to use

Ratio And Financial Statement Analysis

2513 words - 11 pages data. Financial ratio is a quantitative analysis of a business performance. Financial analysis involves investigating the firms invested capital, profitability of the firm, efficiency of operations and debtors security. Financial statements tools and techniques Vertical analysis: this technique is carried out on loss and profit account and the result is expressed in percentage to express the total amount. Horizontal analysis: this techniques

Fnc 1 Study Questions

1002 words - 5 pages assets to liabilities, therefore can pay all it’s liabilities if needed. This is a good indicator if they wanted to become your customer, as you would be a liability on their balance sheet, you can be sure they would pay you. 5. How can you determine the contribution margin from an Income Statement? 6. How is a horizontal and vertical analysis calculated? 7. Describe how horizontal analysis and vertical analysis of a Balance Sheet are used to

Rjet Task 1

4378 words - 18 pages A1a: Horizontal Analysis: To adequately understand what we are looking at it is helpful to understand the true meaning of horizontal analysis. In Webster’s new world dictionary horizontal is defined as “1. Parallel to the plane of the horizon; not vertical. 2. Flat and even; level.” (Simon and Schuster Inc., 1990) Analysis is then defined as “1. A breaking up of a whole into its parts to find their nature, etc. 2. A statement of the results of

Students Bulliying

555 words - 3 pages Cauchy Distribution The Cauchy distribution, also called the Lorentzian distribution or Lorentz distribution, is a continuous distribution describing resonance behavior. It also describes the distribution of horizontal distances at which a line segmenttilted at a random angle cuts the x-axis. Let  represent the angle that a line, with fixed point of rotation, makes with the vertical axis, as shown above. Then | | | (1) | | | | (2

Go Tomorrow

566 words - 3 pages extremes of the distribution of income and wealth Poverty and inequality share causal factors Using graphs: a review • Slope of straight line – Ratio of vertical change “rise” over horizontal change “run” – Slope of straight line: Same numerical value

Wing-In-Ground Effect

4537 words - 19 pages influence of ground effect. The purpose of the horizontal stabilizer is to provide longitudinal trim, stability and control with the aid of the elevator. Directional control and lateral stability are provided by the rudder and vertical stabilizer respectively. The propulsion systems of ekranoplan are generally classified into two types: Separate power plant and integrated power plant. For a separate power plant approach, two groups of engines are

Merger And Aqusition

1849 words - 8 pages are to be used to answers questions 25 and 26 The vertical axis represents costs and the horizontal axis represents activity in all graphs. [pic] 25. Which of the above graphs best represents the cost of a salesperson who gets a fixed salary until a certain level of sales is reached and then gets a bonus, of the same amount for each additional unit sold, in addition to fixed salary (a) Graph A (b) Graph E (c) Graph B (d) Graph D

Ebay Analysis

5371 words - 22 pages Additional foreign expansion Vertical expansion Horizontal expansion Strategic partnerships Threats Internet specific threats Internet taxation Competitors eCommerce sites (Amazon (and zShops), Yahoo (shops and auctions)) Home shopping networks Classified ads Paypal litigation ----------------------- [1] eBay 2002 Annual Report; [2] Ibid [3] Ibid [4] Ibid [5] Hoffman


2159 words - 9 pages days of labour will the firm hire to maximise profit? Number of days of workers 0 1 2 3 4 a. b. c. d. Number of units of output 0 16 30 42 52 1 2 3 4 12. When compared to the demand curve for a factor input when several inputs are variable, the demand curve for a factor input when only one input is variable is a. b. c. d. less elastic. more elastic. vertical. horizontal. 13. Assume that as the wage rate

Cross Function

1663 words - 7 pages indicates how efficiently an organization is using its resources. 9. Compute productivity measures. 
 Productivity is computed as the ratio of organizational outputs divided by inputs. Productivity= output/ input Chapter 3: Product Design & Process Selection 1. Define product design and explain its strategic impact on the organization. 
 Product design is the process of deciding on the unique 4 characteristics (its

Similar Documents

Cariboo Essay

2060 words - 9 pages ratio show a ratios of 1.20 (2001), 0.29 (2002) and 0.91 (2003). The following ratios is further supported by the declining of CI cash as shown in the horizontal analysis of the balance sheet between 2001 and 2002 a reduce of 321,000 (-55.06%) and between 2002 and 2003, a reduce of $424,000 (-266.67%). A vertical analysis of 2001, 2002 and 2003 in CI cash against the total asset also show a declining percentage to 3.35%, 0.73% and 0.16%. Other

Acc 300 Brief Exercise 13 Essay

318 words - 2 pages BRIEF EXERCISE 13-4 Horizontal analysis: | | | | | | Increaseor (Decrease) | | | | | | | | | | | | Dec. 31, 2012 | | Dec. 31, 2011 | |  Amount  | | Percentage* | | | | | | | | | | Accounts receivableInventoryTotal assets | | $ 460,000$ 780,000$3,164,000 | | $ 400,000$ 650,000$2,800,000 | | $ 60,000$130,000$364,000 | | 15%20%13% | = .15         = .20         = .13 BRIEF EXERCISE 13-5

Financial Analysis

532 words - 3 pages Memo of Financial Analysis Sena Lopez ACC/291 December 9, 2014 Malinda Marsh INTERNAL MEMO TO: KOHL COMPANY FROM: SENA LOPEZ RE: FINDINGS FROM VERTICAL AND HORIZONTAL ANALYSIS DATE: 9TH DECEMBER 2014 I am writing to let you know the performance of the company (Kohl) as compared to its competitive company (J.C Penny) in the same industry. Horizontal analysis: This also known as a trend analysis is used to evaluate financial

Jet2 Task 5 Essay

7352 words - 30 pages financial aspect of the company, there are a few key points that could affect a bank officer’s decision. The bank officer would need to figure in on how the company would be able to pay the debt back. The vertical analysis shown in the financial statement shows how the base amount in relation to the particular items. There are a few main points to gather from the vertical analysis. The first one we will take a look at is the net sales of