Exhibit 1.15 is below:

 

 

Effective financial statement analysis requires an understanding of a firm's eco- nomic characteristics. The relations between various financial statement items provide evidence of many of these economic characteristics. Exhibit 1.15 (pages 52-53) presents common-size con- densed balance sheets and income statements for 12 firms in different industries. These common- size balance sheets and income statements express various items as a percentage of operating rev- enues. (That is, the statement divides all amounts by operating revenues for the year.) Exhibit 1.15 also shows the ratio of cash flow from operations to capital expenditures. A dash for a particular financial statement item does not necessarily mean the amount is zero. It merely indicates that the amount is not sufficiently large enough for the firm to disclose it. Amounts that are not meaning- ful are shown as n.m. A list of the 12 companies and a brief description of their activities follow.