Preparing Comparative Financial Statements is the most used technique for analyzing financial statements. This technique determines a
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Preparing Comparative Financial Statements is the most used technique for analyzing financial statements. This technique determines a business's profitability and financial position by comparing financial statements for two or more periods. The income statements and balance sheets are typically prepared comparatively for such an analysis.
Jenny Chang, a finance student at California Polytechnic State University, received an internship in the finance management training program with Smart Electric Parts Company.
Jenny was asked to prepare the companys financial statements and provide a comparative analysis. These statements primarily include income, balance sheets, and cash flow statements.
Financial information as of December Financial information as of December
Cost of goods sold $ Cost of goods sold $
Cash $ Cash $
Depreciation $ Depreciation $
Interest expense $ Interest expense $
Selling & Administrative $ Selling & Administrative $
Accounts payable $ Accounts payable $
Net fixed assets $ Net fixed assets $
Sales $ Sales $
Accounts receivable $ Accounts receivable $
Current portion of Longterm debt $ Current portion of Longterm debt $
Longterm debt $ Longterm debt $
Equity in Equity raised in
Inventory $ Inventory $
Cost of Debt Cost of Debt
Unlevered Cost of Equity Unlevered Cost of Equity
Outstanding Shares Outstanding Shares
Tax rate Tax rate
Dividend percentage Dividend percentage
Prepare income and balance sheet statements for and
Prepare cash flow from assets and cash flow to creditors and equity holders.
What are the capital spending and changes in net working capital for
What is the DuPont Identity for and Explain the firms condition and performance changes, whether they indicate improvement, deterioration, or some combination.
What are the internal and sustainable growth rates for and Define and discuss the implication of these two growth rates in the companys longterm planning.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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