Financial Statement Analysis JET2 Task 1 Evaluate the company’s operational strengths and weaknesses: A-1a Horizontal Analysis is defined as the following: A procedure in fundamental analysis in which an analyst compares ratios or line items in a company's financial statements over a certain period of time (Investopedia). Vertical Analysis is defined as the following: “is a popular method of financial statement analysis that shows each item on a statement as a percentage of a base figure
Words: 6793 - Pages: 28
Running head: Financial Analysis Report 1 Competition Bikes, Inc. Financial Analysis Report Western Governors University Financial Analysis Report 2 Competition Bikes, Inc. Financial Analysis Report Analysis must be completed to determine a company’s performance and future viability. The review of income statements, balance sheets, past and present performance will be utilized to predict future company performance. Management of Competition Bikes, Inc. will then use this information to help
Words: 5856 - Pages: 24
Financial Analysis Task 1 In the following summary report I will provide a closer look at Competition Bikes Inc., by examining the companies’ operational strengths and weaknesses, analyzing the working capital of the company, evaluating the internal controls present in the companies purchasing system and finally I will analyze the companies’ level of compliance with Sarbanes-Oxley requirements. This will be accomplished by taking a very close look at the income statement and balance sheet
Words: 10162 - Pages: 41
are in place to insurance the accuracy of the financial statements. Do you use accounting? If you deal with money, there is a chance that you use accounting in some form. Think about when you write a check and make an entry in your check register. Then, at the end of the month, you go through the check register and try to determine how
Words: 18423 - Pages: 74
Financial Analysis Summary Report Task 1 Competition Bikes Incorporated Lisa A Castro, MSW Western Governors University Horizontal Analysis (A. 1. a) A horizontal analysis can be defined as “the study of percentage changes in comparative statements” (Charles T. Horngren, 2008, p. 746). It is useful in determining a company’s financial stability. This section will analyze Competition Bikes Incorporated’s (CBI) percentage changes from years 6 to 7 and then 7 to 8. The report will include
Words: 6540 - Pages: 27
regulations will allow the company to increase revenue and make a plan for future growth and development. A1a: Horizontal Analysis A horizontal analysis allows comparison of multiple years in a linear fashion, compared with the totals to give a percentage of change (Investopedia, 2013a). The company has many strengths and weaknesses within their financial statements based on the horizontal analysis. The net sales amount for the company is the money the company makes after any deductions, returns, discounts
Words: 8243 - Pages: 33
and Cost-Volume-Profit Analysis Chapter Contents Book Title: Survey of Accounting Printed By: Jean Mette (jeanlucmette@gmail.com) © 2015, 2013 Cengage Learning, Cengage Learning Chapter 11 Cot ehavior and Cot-Volume-Profit Anali Chapter Introduction 11-1 Cost Behavior 11-1a Variable Costs 11-1b Fixed Costs 11-1c Mixed Costs 11-1d Summary of Cost Behavior Concepts 11-2 Cost-Volume-Profit Relationships 11-2a Contribution Margin 11-2b Contribution Margin Ratio 11-2c Unit Contribution
Words: 14685 - Pages: 59
© Orangetree Business Solutions Private Limited, 2012 No part of this book should be referenced or copied without the prior permission of the company. A FEW WORDS TO THE STUDENTS Analytics is becoming a popular tool for managerial decision making. It‘s still not so widespread in countries like India, but in the west it has become a standard practice. Previously studying analytics involved an in depth knowledge of statistics and programming languages. But widespread availability of statistical
Words: 24975 - Pages: 100
10 Creating Charts and Graphics In this chapter, you will learn how to ✔ Create charts. ✔ Customize the appearance of charts. ✔ Find trends in your data. ✔ Summarize your data by using sparklines. ✔ Create dynamic charts by using PivotCharts. ✔ Create diagrams by using SmartArt. ✔ Create shapes and mathematical equations. When you enter data into a Microsoft Excel 2010 worksheet, you create a record of important events, whether they are individual sales, sales for an hour of a day,
Words: 8094 - Pages: 33
Competition Bikes Inc. Summary Report 2014 Here is the Horizontal Analysis for years 6 and 7 for Competition Bikes Inc. Income Statement Sales Revenue: Net sales for Competition Bikes Inc. increase from $4,485,000 to $5,980,000, which was an increase of 33.3% for the year. This is a strength for the company since it shows that the demand for Competitions Bike’s product has increase over the year. This figure should also make stockholders very happy since the money the company makes
Words: 8250 - Pages: 33
