Unformatted text preview: Financial Statement
Analysis and Their
Chapter 3 Learning Objec2ves Upon ﬁnishing this session, the learner is expected to: 1. Know and explain the various ways ﬁnancial statements are analyzed; 2. Know and explain the objec2ves of ﬁnancial statement analyses; 3. Know the steps in doing ﬁnancial statement analyses; 4. Know and explain the limita2ons of ﬁnancial statement analyses; and 5. 5. Perform the steps in doing ﬁnancial statement analyses by applying the diﬀerent techniques, interpreta2ons, conclusions, and draw the implica2ons based on the results of the applica2ons. Prac%cal Steps Proposed in Analyzing Financial Statements 1. Determine which of the objec2ve discussed would be the coverage of the analysis 2. Learn about the retrospec2ve, current, as well as the prospec2ve condi2ons of the industry 3. Get to know the ﬁrm you are analyzing 4. Assess/analyze 5. Interpret the results 6. Draw conclusions from the interpreta2ons. Learning Ac%vi%es Concept Discussion: 1. What are the objec2ves of ﬁnancial statement analysis? 2. What issues limit ﬁnancial statement analysis? 3. Compare and contrast horizontal analysis and ver2cal analysis in terms of procedures, and their uses. Learning Ac%vi%es Concept Applica2on: 1. Compara2ve Statements of Financial Posi2on – TREN Corpora2on 2. Compara2ve Income Statements – TREN Corpora2on ...
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- Spring '14