Interpreting and Analyzing Financial Statements

by Schoenebeck, Karen

• ISBN13: 9780130183767
• ISBN10: 0130183768
• Edition: 2nd
• Format: Paperback
• Copyright: 2001-01-01
• Publisher: PRENTICE HALL

Summary

For Introductory Financial Accounting courses. Designed for use with Harrison and Horngrens'Financial Accounting, 4th Edition or any financial principles accounting text. This activity workbook helps students analyze real company financial statement information and helps prepare students for a capstone project creating a comprehensive financial statement analysis. Each activity concentrates on only one aspect of the analysis and uses data from well-known corporations to pique students' interest and add relevancy.

Table of Contents

Preface	xiii
Introduction to Interpretation and Analysis
Corporations Featured in Chapter 1	1	(18)
Examining Total Assets: Comparing Companies	3	(1)
Examining Assets: Comparing Companies	4	(1)
Examining How Assets Are Financed: Comparing Companies	5	(1)
Examining Net Sales: Comparing Companies	6	(1)
Ratio Analysis: Current Ratio	7	(1)
Ratio Analysis: Debt Ratio	8	(1)
Ratio Analysis: Return on Sales (ROS)	9	(1)
Ratio Analysis: Asset Turnover	10	(1)
Ratio Analysis: Return on Assets (ROA)	11	(1)
Test Your Understanding: A Review of Ratio Analysis	12	(1)
Trend Analysis: Income Statement	13	(1)
Trend Analysis: Balance Sheet	14	(1)
Common-size Statement Analysis: Income Statement	15	(1)
Common-size Statement Analysis: Balance Sheet	16	(1)
Test Your Understanding: A Review of Trend Analysis and Common-size Statements	17	(1)
Internet Research: Using Hoover's Online, The Business Network	18	(1)
Analyzing the Balance Sheet
Corporations Featured in Chatper 2	19	(18)
Strategies for Analyzing the Balance Sheet	21	(1)
Preparing and Interpreting a Classified Balance Sheet: Assets	22	(2)
Preparing and Interpreting a Classified Balance Sheet: Liabilities and Stockholders' Equity	24	(2)
Trend Analysis	26	(2)
Common-size Statements	28	(1)
Industry Norms: Eating Places	29	(1)
Analysis of Southwest Airlines	30	(2)
Analysis of America Online, Inc.	32	(2)
Test Your Understanding: Analyzing the Balance Sheet	34	(2)
Internet Research: Using a Company Web Site	36	(1)
Analyzing the Income Statement
Corporations Featured in Chapter 3	37	(18)
Strategies for Analyzing the Income Statement	39	(1)
Preparing and Interpreting a Multi-step Income Statement	40	(3)
Analyzing the Income Statement: Using PepsiCo	43	(2)
Trend Analysis: Using the Best Buy Company	45	(2)
Common-size Statements	47	(1)
Industry Norms: Air Transportation, Scheduled	48	(1)
Analysis of Yahoo! Corporation	49	(1)
Analysis of Apple Computer	50	(1)
Test Your Understanding: Analyzing the Income Statement	51	(2)
Internet Research: Using a Company Web Site	53	(2)
Analyzing the Statement of Cash Flows
Corporations Featured in Chapter 4	55	(16)
Operating Activities	56	(3)
Investing Activities	59	(2)
Financing Activities	61	(2)
Operating, Investing, or Financing?	63	(1)
Operating, Investing, or Financing?	64	(1)
List Operating, Investing, and Financing Activities	65	(1)
Analysis of Pfizer Incorporated	66	(2)
Analysis of Deckers Outdoor Corporation	68	(1)
Test Your Understanding: Statement of Cash Flows	69	(1)
Internet Research: Using a Company Web Site	70	(1)
Further Ratio Analysis
Corporations Featured in Chapter 5	71	(20)
Researching Industry Norms	73	(1)
Acid-test (Quick) Ratio	74	(1)
Days' Sales in Receivables	75	(1)
Accounts Receivable Turnover	76	(1)
Gross Margin Percentage	77	(1)
Inventory Turnover	78	(1)
Times-Interest-Earned	79	(1)
Return on Assets (ROA)	80	(1)
Return on Equity (ROE)	81	(1)
Earning Per Share (EPS)	82	(1)
Earning Per Share (EPS)	83	(1)
Price/Earnings (P/E) Ratio	84	(1)
Dividend Yield	85	(1)
Book Value Per Share	86	(1)
Test Your Understanding: A Review of Further Ratio Analysis	87	(2)
Internet Research: Using the Fortune Magazine Web Site	89	(2)
Interpreting and Understanding Specific Accounts
Corporations Featured in Chapter 6	91	(19)
Cash and Cash Equivalents	92	(1)
Short-term Investments	93	(1)
Accounts Receivable	94	(1)
Ethics Affecting Financial Statement Amounts: Accounts Receivable	95	(1)
Inventory	96	(1)
Ethics Affecting Financial Statement Amounts: Inventory	97	(1)
Property, Plant, and Equipment	98	(1)
Long-term Investments	99	(1)
Current and Long-term Liabilities	100	(1)
Stockholders' Equity	101	(1)
Current Market Interest Rates	102	(1)
Examining Bond Yields	103	(1)
Examining the Bond Market	104	(1)
Examining the Dow Jones Industrial Average: Using The Wall Street Journal	105	(2)
How to Read Stock Quotes: Using The Wall Street Journal	107	(1)
Following the Stock Market: Using The Wall Street Journal or the Internet	108	(2)
Internet Research: Using the Internet to Research Stock Information	110	(24)
Comprehensive Review
Corporations Featured in Chapter 7	111	(18)
Transactions Affecting Total Assets	112	(1)
Transactions Affecting Total Liabilities	113	(1)
Transactions Affecting Total Stockholders' Equity	114	(1)
Transactions Affecting Net Income	115	(1)
Which Financial Statement?	116	(1)
Financial Statement Preparation	117	(2)
Test Your Understanding: Comprehensive Analysis	119	(4)
Test Your Understanding: Comprehensive Analysis	123	(4)
Internet Research: Using the EDGAR Database	127	(2)
Corporate Analysis
Corporate Analysis Purpose	129	(5)
Part I: Tell Me About Your Company	130	(1)
PART II: Prepare Financial Statements in Condensed Format and a Written Analysis	131	(1)
Part III: Compute Ratios and Compare to Industry Norms	132	(1)
Part IV: Would You Advise a Friend to Invest in this Company?	133	(1)
Corporate Analysis Forms	134