ACC280 week7 Checkpoint
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CheckPoint
Ratio, Vertical, and Horizontal
Analyses
The
calculations you perform for this Check Point form the basis of your analysis
of your capstone project.
Write in
100 to 200 words an explanation of the three tools of financial statement
analysis and the function of each.
Examine PepsiCo,
Inc.’s Consolidated Balance Sheet on p. A6 in Appendix A of Financial
Accounting, especially its Current Assets, Current Liabilities, and Total
Assets for years 2005 and 2004.
Calculate
the following for PepsiCo, Inc. and show your work:
The
Current Ratio for 2005
The
Current Ratio for 2004
Two
measures of vertical analysis—for example, compute the current assets divided
by total assets for each year, and express your result as a percentage
Two
measures of horizontal analysis—for example, compute the total change in assets
by percentage, by dividing current assets in 2005 by current assets in 2004.
Compute a similar percentage for current liabilities
Examine TheCoca-Cola Company’s Consolidated Balance sheet on p.
B2 in Appendix B of Financial Accounting,
especially its Current Assets, Current Liabilities, and Total Assets for years
2005 and 2004.
Calculate
the following for Coca-Cola and show your work:
The
Current Ratio for 2005
The
Current Ratio for 2004
Two
measures of vertical analysis—for example, compute the current assets divided
by total assets for each year, and express your result as a percentage
Two
measures of horizontal analysis—for example, compute the total change in assets
by percentage, by dividing current assets in 2005 by current assets in 2004.
Compute a similar percentage for current liabilities
TUTORIAL PREVIEW
Two
measures of vertical analysis—for example, compute the current assets divided
by total assets for each year, and express your result as a percentage
PepsiCo,
Inc
Vertical
Analysis
|
Item
|
2005
|
2004
|
||
|
Amount
|
%
|
Amount
|
%
|
|
|
Current Assets
|
10,454
|
32.94%
|
8,639
|
30.87%
|
