Accounting Table of Contents Introduction 3 Chapter 1: Accounting Information and the Accounting Cycle 4 Chapter 2: Financial Statements Overview 7 Chapter 3: Controlling and Reporting of Cash and Receivables 10 Chapter 4: Reporting of Current & Contingent Liabilities 13 Chapter 5: The Time Value of Money 16 Chapter 6: Analyzing Financial Statements 21 Conclusion 25 Introduction I want to thank you and congratulate you for downloading the book, "A Simple Step by
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A1a: Horizontal Analysis: To adequately understand what we are looking at it is helpful to understand the true meaning of horizontal analysis. In Webster’s new world dictionary horizontal is defined as “1. Parallel to the plane of the horizon; not vertical. 2. Flat and even; level.” (Simon and Schuster Inc., 1990) Analysis is then defined as “1. A breaking up of a whole into its parts to find their nature, etc. 2. A statement of the results of this…” (Simon and Schuster Inc., 1990) Therefore in
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A1a: Horizontal Analysis: To adequately understand what we are looking at it is helpful to understand the true meaning of horizontal analysis. In Webster’s new world dictionary horizontal is defined as “1. Parallel to the plane of the horizon; not vertical. 2. Flat and even; level.” (Simon and Schuster Inc., 1990) Analysis is then defined as “1. A breaking up of a whole into its parts to find their nature, etc. 2. A statement of the results of this…” (Simon and Schuster Inc., 1990) Therefore in
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Inc. will be analyzed by several methods: horizontal analysis, vertical analysis, trend analysis, and ratio analysis. The first is horizontal analysis which “ratios or line items in a company's financial statements are reviewed over a certain period of time. “ (Investopedia.com) The period of time in which this report will be basing its findings are solely on its income statements from year six, seven, eight and nine. As shown in the horizontal analysis file, it is easy to see that Competition Bikes
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may use an accrual-based accounting method. Another,difference is financial ratios should be considered at the beginning of the analysis. There are three types of analysis which are generally used when analyzing financial statements. These three statements are horizontal,vertical,and ratio. Horizontal analysis, compares the percentages and dollar change of each line item of a company financial statements. Vertical analysis,
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using four methods. The first method is horizontal analysis where each line item is compared for two or more accounting cycles. The next method is vertical analysis of the financial statements in which the major categories of assets, liabilities and equities are reviewed and analyzed. A trend analysis will follow which will identify current and past performance trends to determine future predictions. The fourth method will be a ratio analysis. These ratios can be compared to Competition Bike’s closest
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company’s operational strengths and weaknesses based on the following: a) Review the horizontal analysis, analyze the results, and discuss operational areas of concern. “Horizontal analysis of financial statements involves comparison of a financial ratio, a benchmark, or a line item over a number of accounting periods. This method of analysis is also known as trend analysis. Horizontal analysis allows the assessment of relative changes in different items over time. It also indicates the
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Horizontal Analysis Horizontal analysis is one of the two main ways to analysis the financial statements of a business. This analysis provides a year to year look at the financial performance of the business being evaluated. The spreadsheet that is attached provides a horizontal analysis of years 6, 7, and 8 for the balance sheet and income statement for Competitive Bikes and Two Wheel Racing. The horizontal analysis can take into account either the dollar amount of the changes over the years or
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Summary Report for Competition Bikes Inc., Horizontal Analysis The income statement from year 6 to year 7 sales went up by 33% while product costs, went up only by 31%. Selling expense (33%) and general operating expense (20%) both increased from year 6 to year 7. These increases did not offset the increase in sales, but help contribute to having greater profits in year 7 than the prior year. Net income grows by 313%. The balance sheets also show a growth in assets, with total
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Horizontal Analysis Horizontal analysis is one of the two main ways to analysis the financial statements of a business. This analysis provides a year to year look at the financial performance of the business being evaluated. The spreadsheet that is attached provides a horizontal analysis of years 6, 7, and 8 for the balance sheet and income statement for Competitive Bikes and Two Wheel Racing. The horizontal analysis can take into account either the dollar amount of the changes over the years or
Words: 8569 - Pages: 35
