Study Questions for Chapter 17 - Part I

Study Questions for Chapter 17 - Part I - How are they...

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Study Questions for Chapter 17 – Part I 1. Describe how to perform horizontal analysis and what information it provides. 2. Describe how to perform vertical analysis on an income statement and on a balance sheet. Carefully describe the nature of information this type of analysis provides for each of these two financial statements (i.e. the information if different for both), and why it is useful. 3. Describe common sized statements.
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Unformatted text preview: How are they similar to the statements you described in question 2 above? How are common sized statements used? Why are they useful for this type of comparison? 4. Describe the Following Ratios, how they are calculated and what they tell us about. Current Ratio Quick Ratio Accounts receivable ratio Number of Days sales in receivables Inventory Turnover Number of days sales in inventory...
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This note was uploaded on 02/11/2012 for the course BUSINESS 130 taught by Professor Mccormack during the Fall '10 term at Berea.

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