Xacc 280 Week 7 Checkpoint
There are three ways to analyze financial statements there is the vertical analysis, which uses the base percentage to express the assets or liabilities and stockholders’ equity. Horizontal analysis or the trend analysis is how someone can evaluate the financial statement over a period. With this method, one can determine an increase or decrease in assets liabilities or stockholders equity. This can be done in percentage or totals Horizontal analysis is used primarily with an intercompany comparison. Ratio analysis is when one uses three comparisons to look at the financial statements it would look at industry average intracompany and intercompany. Ratio expresses the mathematical relationship in a percentage either a rate or a proportions. It depends on if you are a Short-term creditor or a stockholder which method will be most beneficial for the necessary information to make a sound decision. This information can be overwhelming so careful study and practice is important when analyzing finical statements.
Pepsi
2005 Current ratio is 1.11% that is after looking at assets of 10,454 with liabilities of 9,406(in millions)
2004 current ratio is 1.28% with assets of 8,639 and liabilities of 6,752(in millions)
2005 vertical analysis 5.4% with 1,716(cash/equivalent), 31,727 (total assets)
2004 vertical analysis 4.6% with 1,280 and 27,987
Coca cola
Current ratio in 2005 is 1% they had 10,250 in assets and 9,836 in liabilities Current ratio in 2004 was 1% with 12,281 in assets and liabilities of 11,133
Vertical analysis in 2005 rounded up to 1% with 4,701 in cash and assets of 29,427 Vertical analysis of 2004 with 1% cash at 6,707 and assets of
Pepsi
2005 Current ratio is 1.11% that is after looking at assets of 10,454 with liabilities of 9,406(in millions)
2004 current ratio is 1.28% with assets of 8,639 and liabilities of 6,752(in millions)
2005 vertical analysis 5.4% with 1,716(cash/equivalent), 31,727 (total assets)
2004 vertical analysis 4.6% with 1,280 and 27,987
Coca cola
Current ratio in 2005 is 1% they had 10,250 in assets and 9,836 in liabilities Current ratio in 2004 was 1% with 12,281 in assets and liabilities of 11,133
Vertical analysis in 2005 rounded up to 1% with 4,701 in cash and assets of 29,427 Vertical analysis of 2004 with 1% cash at 6,707 and assets of