1. Prepare comparative income statements showing the percent increase or decrease for the current year in comparison to the prior year. 2. Prepare common-size comparative balance sheets for both years. 3. Compute the following ratios for the current year and identify each one's building block category for financial statement analysis. a. Current ratio g. Debt-to-equity ratio h. Times interest earned i. Profit margin ratio j. Total asset turnover k. Return on total assets I. Return on common stockholders' equity b. Acid-test ratio Accpunts receivable turnover d. Days' sales uncollected e. Inventory turnover c. f. Debt ratio PRECISION COMPANY Comparative Income Statements For Years Ended December 31 Current Yr Prlor Yr Sales ..... $2,486,000 $2,075,000 Cost of goods sold ... Gross profit.... 1,523,000 1,222,000 963,000 853,000 Operating expenses Advertising expense.. Sales salarles expense.. 145,000 100,000 240,000 280,000 Office salarles expense. 165,000 200,000 Insurance expense. 100,000 45,000 Supplles expense.. 26,000 35,000 Depreciation expense 85,000 75,000 Miscellaneous expenses 17,000 15,000 Total operating expenses 778,000 750,000 Operating Income.. 185,000 103,000 Interest expense.. Income before taxes... Income tax expense . Net Income ..... 44,000 46,000 141,000 57,000 47,000 19,000 $ 38,000 $ 94,000 Earnings per share.... 2$ $ 0.99 0.40

Which of the following best describes what we mean when we refer to the quality of financial statements? O A. Showing only revenue from product sells. B. Presenting all relevant information in a fair and complete manner. O C. Listing all assets in alphabetical order. OD. All of the above.

Please analyze, assess, and synthesize the Annual Report or Form 10-K or Form 20 - F (whatever they call it in that jurisdiction) of the company you choose. You can usually find it on the Company's website in Investor R. Introduction 2. Industry situation and company plans A. Management Letter B. B. Review Company's Products and Services 3. Financial Statements A. Income Statement B. Cash Flow Statement C. Balance Sheet D. Accounting Policies 4. Financial Analysis & Ratio A. Financial Analysis B. Ratio C. Market Indicator Financial Ratios 5. References 6. Complete Calcuation of Part 4 in excelLimi

Providing information to external users for decision making is the purpose of which of the following?A) Management reportsB) Tax formsC) Financial statementsD) Inventory reports Group of answer choices A B C D

Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why.

What are the major components of a company's financial statements and what information does each component provide?

Which of the following is the most useful in analyzing companies of different sizes? a.comparative statements b.common-sized financial statements c.price-level accounting d.audit report

Describe the purpose of the balance sheet and disclosure notes in the financial statement, give examples.