Chapter 12 Study Plan

Study Plan: Financial Statement Analysis

Knowledge Targets

I can define the following terms as they relate to our unit:

Net Income Retained Earnings Horizontal Analysis
Vertical Analysis Ratio Analysis Trend Percents
Current Assets Current Liabilities Average Inventory
Average Accounts Receivable Percent of change Dollar amount of change
 

 Reasoning Targets

• I can understand the use of horizontal analysis, vertical analysis and ratio analysis

to evaluate company performance.

• I can analyze and explain the trends of a company using horizontal analysis.

• I can analyze and explain a company’s financial statements using vertical analysis.

• I can analyze and explain a company’s financial performance using ratio analysis.

 

Skill Targets

• I can calculate dollar amount of change and percentage of change for accounts on the financial statements using horizontal analysis.

• I can calculate trend percentages for horizontal analysis.

• I can calculate the common-size percentages using vertical analysis.

• I can calculate ratios used in ratio analysis.

Click Fin Stmt Analysis for a printable copy.

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