CHAPTER-15

Horizontal Analysis (Trend Analysis)

Dollar & Percentage
Year-to-Year Changes within Changes on Statements
a Set of Financial Statements

Vertical Analysis Common-Size Current Asset

Relations among Financial Statement Accounts Statements 1. Working Capital
Current Liabilities

2. Current Ratio Current Asset

Net Income
Current Liabilities
Preferred Dividends 1. Earnings per Share
Cash
Average Number of Common Shares Marketable Securities
Market Price per Share
2. Price-Earnings Ratio
Ratio Analysis for 3. Acid-Test (Quick) Ratio Accounts Receivable
Earnings per Share Short Term Creditor
Short-term Notes Receiveables
Dividends per Share Financial Statement Current Liabilities
3. Divident Payout Ratio
Earnings per Share Analysis Sales on Account
4. Accounts Receiveable
Dividends per Share 4. Divident Yield Ratio Turnover Average Accounts
Receiveable Balance
Market Price per Share Ratio Analysis for Cost of Goods Sold
Net Income Common Stockholder 5. Inventory Turnover
Average Inventory Balance
Interest Expense 5. Return on Total Assets
Tax Rate Earnings before Interest Expen
and Income Taxes
Average Total Assets 1. Times Interest Earned Ratio
Ratio Analysis for Interest Expense
Net Income 6. Return on Common Long Term Creditor
Preferred Dividends Stakeholder's Equity 2. Debt-to-Equity Ratio
Total Liabilities
Average Common
Stockholder's Equity
Stockholders Equity
Total Stockholder's Equity
7. Book Value per Share
Preferred Stock
Number of Common Shares