Exam 17: Analysis of Financial Statements

A good financial statement analysis report usually includes the following six sections: (1) ______________________, (2) ____________________, (3) _______________, (4) __________________ (5) __________________, and (6) ____________________.

Guidelines (rules-of-thumb) are developed from:

Trend percentage is calculated by dividing _________________________ by ___________________________ and multiplying the result by 100.

Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount, and in which the base amount is expressed as 100%, are called:

A good financial report does not link interpretations and conclusions of analysis with the underlying information.

The building blocks of financial statement analysis include:

Describe ratio analysis including its purpose, application, and interpretation.

Express the following income statement information in common-size percents (round to nearest whole percent). Comment on the results.

Vertical analysis is used to reveal patterns in data covering successive periods.

The comparison of a company's financial condition and performance to a base amount is known as ___________________________.

The measurement of key relations among financial statement items is known as:

Intracompany standards for financial statement analysis:

Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in dollar amounts and percents, are referred to as:

Capital structure refers to a company's long-run financial viability and its ability to cover long-term obligations.

A good financial statement analysis report often includes the following sections: executive summary, analysis overview, evidential matter, assumptions, key factors, and inferences.

Which of the following items is not likely an extraordinary item?

Comparative calendar year financial data for a company are shown below. Calculate the following ratios for 2012: (a) return on total assets. (b) return on common stockholders' equity.

Refer to the following selected financial information from Fennie's, LLC. Compute the company's inventory turnover for Year 2.

Total asset turnover reflects a company's ability to use its assets to generate sales and is an important indication of operating efficiency.

Ratios may be expressed as (1) _______________________, (2) _______________________, or (3) _______________________.