Horizontal analysis is a way of making a comparison of financial statements of two years in which one year is taken to be the base year and the comparison is done with the like items and results are given in terms of percentage. Vertical analysis is a way of comparison of two items in the respective statement. This means that every item of balance sheet is being compared with the total assets of the company and every item of income statement is being compared with the total sales of the period of the company. Whether there is any change in the proportion of asset investments from 2018 to 2019 .

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 97.4C

To determine

Concept introduction:

Horizontal analysis is a way of making a comparison of financial statements of two years in which one year is taken to be the base year and the comparison is done with the like items and results are given in terms of percentage.

Vertical analysis is a way of comparison of two items in the respective statement. This means that every item of balance sheet is being compared with the total assets of the company and every item of income statement is being compared with the total sales of the period of the company.

Whether there is any change in the proportion of asset investments from 2018 to 2019.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017 annual report as noted below, calculate the financial ratios for 2019 and 2018 indicated using the EXCEL template provided: Gross profit percentage Return on sales Asset turnover Return on assets Return on common stockholders’ equity Current ratio Quick ratio Operating-cash-flow-to-current-liabilities ratio 9. Accounts receivable turnover Total assets 2017 = $21,812.6 Total stockholders’ equity 2017 = $4,327.9 Total current liabilities 2017 = $5,330.8 Accounts receivable 2017 = $1,430.1 Inventory 2017 = $1,483.6 Year-end closing stock price May 2019 = $50.93 Year-end closing stock price May 2018 = $39.37

Not Graded Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020 annual report as noted below, calculate the financial ratios for 2020 and 2019 indicated using the EXCEL template provided:1. Gross profit percentage2. Return on sales3. Asset turnover 4. Return on assets5. Return on common stockholders’ equity6. Current ratio7. Quick ratio8. Operating-cash-flow-to-current-liabilities ratio9. Accounts receivable turnoverTotal assets 2020 = $30,806.7Total stockholders’ equity 2020 = $8,349.5Total current liabilities 2020 = $7,491.5Accounts receivable 2020 = $1,615.1Inventory 2020 = $1,426.3Year-end closing stock price May 2020 = $58.80Year-end closing stock price May 2019 = $53.56

Forecasting an Income Statement ADP reports the following income statement. AUTOMATIC DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2019, $ millions Total revenues Operating expenses Systems development and programming costs Depreciation and amortization Total cost of revenues Selling, general, and administrative expenses Interest expense Total expenses Other (income) expense, net Earnings before income taxes Provision for income taxes Net earnings Forecast ADP's 2020 income statement assuming the following income statement relations. All percentages (other than total revenue growth and provision for income taxes) are based on historic percent of total revenues. Dollar figures are in millions Assumptions Total revenues growth Depreciation and amortization Interest expense Other (income) expense, net Income tax rate 13.00% $460.5 No change No change 25.00% $14,175.0 7,146.0 636.0 304.4 8,086.4 3,064.0 130.0 11,280.4 (111.0) 3,005.6 713.0 $2,292.6 Note:…

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 97.4C

To determine

Concept introduction:

Horizontal analysis is a way of making a comparison of financial statements of two years in which one year is taken to be the base year and the comparison is done with the like items and results are given in terms of percentage.

Vertical analysis is a way of comparison of two items in the respective statement. This means that every item of balance sheet is being compared with the total assets of the company and every item of income statement is being compared with the total sales of the period of the company.

Whether there is any change in the proportion of asset investments from 2018 to 2019.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 97.4C

To determine

Concept introduction:

Horizontal analysis is a way of making a comparison of financial statements of two years in which one year is taken to be the base year and the comparison is done with the like items and results are given in terms of percentage.

Vertical analysis is a way of comparison of two items in the respective statement. This means that every item of balance sheet is being compared with the total assets of the company and every item of income statement is being compared with the total sales of the period of the company.

Whether there is any change in the proportion of asset investments from 2018 to 2019.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 97.4C

To determine