CART

(0) items

Understanding and Analyzing Financial Statements : A Project-Based Approach,9780132391900

Understanding and Analyzing Financial Statements : A Project-Based Approach

by
Edition:
4th
ISBN13:

9780132391900

ISBN10:
0132391902
Format:
Paperback
Pub. Date:
1/1/2007
Publisher(s):
Prentice Hall
List Price: $40.00
More New and Used
from Private Sellers
Starting at $0.58
See Prices

Rent Textbook

We're Sorry
Sold Out

Used Textbook

We're Sorry
Sold Out

eTextbook

We're Sorry
Not Available

New Textbook

We're Sorry
Sold Out

Related Products


  • Interpreting and Analyzing Financial Statements
    Interpreting and Analyzing Financial Statements
  • Interpreting and Analyzing Financial Statements
    Interpreting and Analyzing Financial Statements
  • Interpreting and Analyzing Financial Statements
    Interpreting and Analyzing Financial Statements
  • Interpreting and Analyzing Financial Statements
    Interpreting and Analyzing Financial Statements




Summary

For use as a supplement inPrinciples of AccountingandIntroduction to Financial Accountingcourses. Perfect for any accounting course where analyzing financial statements and understanding financial ratios is important. Thisactivity workbookhelps students analyze real company financial statement information. 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

Prefacep. xi
Introduction
The Four Financial Statementsp. 1
Identify the four financial statements
Understand the basic information provided by each financial statement
Balance Sheet (B/S)p. 2
Understand the information provided by the balance sheet
Identify asset, liability, and stockholders equity accounts reported on the balance sheet
Understand the accounting equation
Income Statement (I/S)p. 4
Understand the information reported on the income statement
Identify revenue and expense accounts reported on the income statement
Statement of Retained Earnings (R/E)p. 5
Understand information provided by the Statement of Retained Earnings
Identify relationships between the IS, RE, and the
BS Understand information provided by the Statement of Cash Flows
Generally Accepted Accounting Principles (GAAP)p. 6
Understand that GAAP (Generally Accepted Accounting
Principles) are the rules of financial accounting
Apply the historical cost principle
Analysis: Ratiosp. 7
Understand that analysis reveals relationships
Explore the relationships between assets, liabilities, revenues, and net income
Examine the debt ratio, ROS (return-on-sales) ratio, asset-turnover ratio, and the ROA (return-on-asset) ratio
Analysis: Trendp. 10
Prepare a trend analysis and understand the information provided is preferred
Analysis: Common-Size Statementsp. 11
Prepare common-size statements and understand the information provided
Test Your Understandingp. 13
Review the four financial statements Compute net income
Prepare and evaluate trend and common-size statements
Balance Sheet
The Classified Balance Sheetp. 15
Identify account classifications typically used on the balance sheet
Understanding the Balance Sheetp. 16
Identify the value at which amounts are reported on the balance sheet
Understand what an increase or a decrease in an account indicates
Develop strategies for analyzing the balance sheet
Debt vs. Equityp. 18
Identify the characteristics of debt and equity
Assess financial risk
Analysis: Ratiosp. 19
Understand the Information provided by the current ratio and the debt ratio
Analysis: Trend
Prepare a trend analysis and understand the information provided
Analysis: Common-Size Statementsp. 21
Prepare common-size statements and understand the information provided
Analysis of Yum! Brandsp. 22
Understand and interpret amounts reported on the balance sheet
Analysis of McDonald'sp. 24
Understand and interpret amounts reported on the balance sheet
Test Your Understandingp. 26
Understand and interpret amounts reported on the balance sheet
Income Statement
The Multi-Step Income Statementp. 29
Identify the types of accounts presented on the income statement
Understand the organization of the multi-step income statement
Multi-Step Subtotals and Totalsp. 30
Identify subtotals and totals on the multi-step income statement and how they are computed
Understand the information presented by each multi-step subtotal and total
A Series of Multi-Step Income Statementsp. 32
Understand the relationship between the trend of revenue and the trends of other income statement accounts
Interpret the meaning of increases and decreases in the various income statement accounts
Identify the meaning of parentheses reported on the financial statements
Develop strategies for analyzing the income statement
Accrual Accounting and GAAPp. 34
Understand accrual accounting and how it differs from cash accounting
Apply the Realization Concept and the Matching Concept
Analysis: Ratiosp. 35
Understand the information provided by profitability ratios
Understand that an increasing trend is preferred for profitability ratios
Understand that the expected range of ratios varies by industry
Understand that comparing a ratio to industry norms enhances meaning
Understand that reviewing a number of ratios helps to provide an overall impression of profitability
Understand that caution should be used when comparing EPS between companies
Analysis: Trendp. 38
Prepare a trend analysis and understand the information provided
Analysis: Common-Size Statementsp. 40
Prepare common-size statements and understand the information provided
Analysis of Hewlett-Packard Companyp. 41
Understand and interpret amounts reported on the income statement
Analysis of Gateway, Inc.p. 42
Understand and interpret amounts reported on the income statement
Test Your Understandingp. 43
Understand and interpret amounts reported on the income statement
Statement of Cash Flows
Understanding the Statement of Cash Flowsp. 45
Understand cash inflows and cash outflows
Identify operating, investing, and financing activities
Operating Activitiesp. 47
Understand operating activities on the statement of cash flows
Direct and Indirect Methodsp. 48
Understand the direct and indirect method of reporting operating activities
Direct Methodp. 49
Prepare the operating section of the statement of cash flows using the direct method
Indirect Methodp. 51
Prepare the operating section of the statement of cash flows using the indirect method
Investing Activitiesp. 52
Understand investing activities on the statement of cash flows
Financing Activitiesp. 53
Understand financing activities on the statement of cash flows
Operating, Investing, or Financing?p. 54
Identify operating, investing, and financing activities on the statement of cash flows
Understand the amount reported and whether the transaction results in an inflow or an outflow of cash
Analysis: Ratiosp. 55
Understand the information provided by cash flow ratios
Sources and Uses of Cash Statementp. 57
Prepare a sources and uses of cash statement and understand the information provided
Analysis: Trendp. 58
Prepare a trend analysis using the sources and uses of cash schedule and understand the information provided
Analysis: Common-Size Statementsp. 59
Prepare common-size statements using the sources and uses of cash statement and understand the information provided
Analysis of Anheuser-Buschp. 60
Understand and interpret amounts reported on the statement of cash flows
Analysis of Gatewayp. 61
Understand and interpret amounts reported on the statement of cash flows
Test Your Understanding: Statement of Cash Flowsp. 62
Understand and interpret amounts reported on the statement of cash flows
Interpreting and Understanding Specific Accounts
Cash and Cash Equivalentsp. 65
Reinforce understanding of cash and cash equivalents
Short-Term Investmentsp. 66
Reinforce understanding of amounts reported for short-term investments
Accounts Receivablep. 67
Reinforce understanding of amounts reported on the financial statements for accounts receivable
Ethics Affecting Financial Statement Amounts: Accounts Receivablep. 68
Understand the effect ethical decisions have on amounts reported on the financial statements
Inventoryp. 69
Reinforce understanding of amounts reported on the financial statements for inventory as a result of using the LIFO cost-flow assumption
Ethics Affecting Financial Statement Amounts: Inventoryp. 70
Understand the effect ethical decisions have on amounts reported on the financial statements
Property, Plant, and Equipmentp. 71
Reinforce understanding of property, plant, and equipment amounts reported on the financial statements
Ethics Affecting Financial Statement Amounts: Plant, and Equipmentp. 72
Understand the effect ethical decisions have on amounts reported on the financial statements
Long-Term Investmentsp. 73
Reinforce understanding of investments classified as available-for-sale securities
Current and Long-Term Liabilitiesp. 74
Reinforce understanding of amounts reported on the financial statements for current and long-term liabilities
Stockholders' Equityp. 75
Reinforce understanding of amounts reported on the financial statements for stockholders' equity
Current Market Interest Ratesp. 76
Benchmark current market rates and understand why they differ
Examining Bond Yieldsp. 77
Understand why bond yields differ
Examining the Bond Marketp. 78
Understand why bonds sell at a premium, at par, or at a discount
Examining the Dow Jones Industrial Averagep. 79
Understand how the DJIA is computed
Understand the Information provided by the average
Following the Stock Marketp. 80
Follow the stock market quotes for three companies and the Dow Jones Industrial Average (DJIA) for four weeks
Understand market value per share
Comprehensive Review
Transactions Affecting Total Assetsp. 81
Review the effect of various transactions on total assets
Transactions Affecting Total Liabilitiesp. 82
Review the effect of various transactions on total liabilities
Transactions Affecting Total Stockholders' Equityp. 83
Review the effect of various transactions on total stockholders' equity
Transactions Affecting Net Incomep. 84
Review the effect of various transactions on net income
Which Financial Statement?p. 85
Reinforce understanding of the information provided by each financial statement
Financial Statement Preparationp. 86
Apply the revenue recognition and the matching principles
Differentiate between accrual accounting and cash accounting
Prepare a multi-step income statement, the statement of retained earnings, a classified balance sheet, and the operating activity section of the statement of cash flows
Researching Industry Normsp. 88
Introduce the concept of industry norms and how to research these averages
Ratio Analysis
Understand that reviewing many ratios helps give an overall impression of corporate financial strength
Understand that meaning is added to a ratio by comparing that ratio to industry norms or to a company within the same industry since norms may vary by industry
Test Your Understanding: Comprehensive Analysisp. 91
Analyze the income statement, the balance sheet, and the statement of cash flows
Prepare a statement of retained earnings
Test Your Understanding: Comprehensive Analysisp. 96
Analyze the income statement, the balance sheet, and the statement of cash flows
Prepare a statement of retained earnings
Test Your Understanding: Comprehensive Analysisp. 101
Analyze the income statement, the balance sheet, and the statement of cash flows
Prepare a statement of retained earnings
Corporate Analysisp. 107
Part I: Tell Me About Your Companyp. 108
Use a variety of resources to research a corporation
Prepare a well-written paper describing your corporation
Part II: Market Researchp. 109
Research the current stock quote of your company and analyze past market activity
Summarize market activity results
PART III: Compute Ratios and Compare to Industry Normsp. 110
Research the primary SIC (Standard Industrial Classification) Code for your company
Use resources available to obtain industry averages for commonly used ratios
Compare company ratio results to industry averages
Prepare a well-written report summarizing the ratio analysis using appropriate business and accounting vocabulary
Part IV: Prepare Financial Statements in Condensed Format and a Written Analysisp. 111
Use resources available to obtain financial statements for the past four fiscal years
Prepare a classified balance sheet, multi-step income statement, and the statement of cash flows using the condensed format provided
Prepare a sources and uses of cash statement
Prepare trend analyses and common-size statements
Prepare a well-written analysis of each financial statement using appropriate business and accounting vocabulary
Part V: Written Report: Would You Advise a Friend to Invest in this Company?p. 112
Base a recommendation on previous research, analysis, and sound reasoning
Prepare a well-written report using appropriate business/accounting vocabulary
Part VI: Presentation: Would You Advise a Friend to Invest in this Company?p. 112
Base a recommendation on previous research, analysis, and sound reasoning
Prepare a presentation using one visual aid
Presentation Tipsp. 113
Written Project Grade Sheetp. 114
Presentation Grade Sheetp. 115
Corporate Analysis Formsp. 116
Featured Corporationsp. A1
Ratiosp. B1
Table of Contents provided by Ingram. All Rights Reserved.


Please wait while the item is added to your cart...