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FINANCIAL STATEMENT ANALYSIS
223. In analyzing and interpreting financial
statement information, three major characteristics are generally
(2)_____________, and (3)_____________.
224. ______________ analysis, also called trend analysis,
is a technique for evaluating a percentage increase or decrease for a financial
statement item over a period of time.
225. Expressing each item within a financial
statement as a percentage of a base amount is called ______________ analysis.
226. The ratios used in evaluating a company’s
liquidity and short-term debt paying ability that complement each other are the
______________ ratio and the ______________ ratio.
227. The accounts receivable turnover is
calculated by dividing _________________ by average ___________________.
228. If inventory turnover is 8 times, and the
average inventory was $400,000, the cost of goods sold during the year was
$______________ and the days in inventory was ______________ days.
229. Stanton Corporation had net income for the
year of $200,000 and a profit margin of 20%. If total average assets were
$400,000, the asset turnover ratio was ____________ times.
230. The ______________ ratio measures the
percentage of earnings distributed in the form of cash dividends.
231. The lower the ______________ to
______________ ratio, the more equity “buffer” there is available to
232. Times interest earned is calculated by
dividing _____________ before _______________ and ________________ by interest
233. Discontinued operations refers to the
disposal of a ______________ of a business.
234. The two criteria necessary for an item to be
classified as an extraordinary item are that the transaction or event must be
(1) __________________ and (2) ___________________.
235. A change in inventory methods during the
year would be classified as a change in __________________.