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Unformatted text preview: Vertical Analysis is a financial analysis technique of comparing items within financial statements to significant totals. Working Capital measures the adequacy of short-term assets. It is computed by subtracting current liabilities from current assets. Formulas to Review Current Ratio = Current Assets/Current Liabilities Quick Ratio = Quick Assets/Current Liabilities Accounts receivable turnover = Net credit sales/average accounts receivable Inventory turnover = Cost of Goods Sold/Average Inventory...
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This note was uploaded on 03/31/2011 for the course ACCT 102 taught by Professor Wang during the Spring '11 term at Adelphi.
- Spring '11