chapter 17.docx - Consolidated financial statements include a balance sheet containing two years of comparative data an income statement containing

chapter 17.docx - Consolidated financial statements include...

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Consolidated financial statements include a balance sheet containing two years of comparative data; an income statement containing three years of comparative data; a statement of cash flows containing three years of comparative data; and a statement of shareholders' equity containing three years of comparative data. Publicly held companies must file detailed annual reports (Form 10-K), quarterly reports (Form 10-Q), and special events reports (Form 8-K) with the Securities and Exchange Commission. horizontal analysis calculates changes in comparative statement items or totals, whereas vertical analysis consists of a comparison of items on a single financial statement. You calculate the percentage change by dividing the dollar change by the dollar amount for the earlier year. calculate trend percentages by: Selecting a base year or period. Assigning a weight of 100 percent to the amounts appearing on the base-year financial statements. Expressing the corresponding amounts on the other years' financial statements as a percentage of base-year or period amounts. Compute the percentages by dividing nonbase-year amounts by the corresponding base-year amounts and then multiplying the result by 100.
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Lesson: Financial Statement Analysis How to Retrieve Financial Statements The financial statements of all U.S. publicly traded companies are a matter of public record. You can obtain a copy either by: Visiting MorningStar Financials . In the search box, type the name of your company. On the next page, under the name of the company, select which financial statement you want (Balance Sheet, Income Statement, or Statement of Cash Flows). Make sure the "Statement Type" is set to "Annual." Then click on "Export" on the top right in order to export the financial statement in Excel format.
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