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Week 8 Check Poing

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Submitted By kwhipple84
Words 304
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Week 7 day 6 checkpoint

The three financial statement analysis tools are the following, horizontal, vertical and ratio analays.
The horizontal analysis is when you compare two or more years for a single company, it also compares dollar amounts, inventory and cash.
Vertical analysis- This calculates get the percentage of the total calculated on a single financial statement
Ratio analysis- This is the relationship between the vertical and horizontal analysis, this is used to calculate the financial trends for a number or years

Calculations- Liabilities and Assets for PepsiCo Inc. based on their consolidated Balance Sheet
2005
Current Ratio= 10,454 (Current Assets) | = 1.11% | 9,406 (Current Liabilities) | 2004 Current Ratio= 8,639 (Current Assets) | = 1.28% | 6,752 (Current Liabilities) | | Vertical Analysis- 2005 %= 1,716 (Cash, and Cash Equivalent) | = 0.054 or 5.4% | 3,1727 (Total Assets) | | Vertical Analysis- 2004
%= 1,280 (Cash and Cash Equivalent) | = 0.046 or 4.6% |
27,987 (Total Assets) | | Horizontal Analysis- 2005 (10454 (total current assets 2005) / (8639 (total current assets 2004) = 1.2101 | Or 21% | Horizontal Analysis- 2004
(9404 (total current liabilities 2005) / (6752 (total current liabilities 2004) = 1.393 | Or 39% | These analysis show: that the PepsiCo has had an increase in assets by 21%, with an increase in liabilities of 39%. This is a result of the company obtaining more liabilities. | | Calculations- Liabilities and Assets for Coca-Cola Co. based on their consolidated Balance Sheet 2005 Current Ratio= 10,250 (Current Assets) | = % 9,836(Current Liabilities) | | 2004- Current Ratio= 12,281 (Current Assets) | = % | 11,133(Current Liabilities) | | Vertical

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