文本分析成果2021及课件

1、Financial and Managerial Accounting8th EditionWarren Reeve FessPowerPoint Presentation by Douglas CloudProfessor Emeritus of AccountingPepperdine University Copyright 2004 South-Western, a division of Thomson Learning. All rights reserved. Task Force Image Gallery clip art included in this electroni

2、c presentation is used with the permission of NVTech Inc.Some of the action has been automated, so click the mouse when you see this lightning bolt in the lower right-hand corner of the screen. You can point and click anywhere on the screen.1. List the basic financial statement analytical procedures

3、.2. Apply financial statement analysis to assess the solvency of a business.3. Apply financial statement analysis to assess the profitability of a business.4. Summarize the uses and limitations of analytical measures.5. Describe the contents of corporate annual reports.What is horizontal analysis?It

4、s an analysis of the percentage increases and decreases of related items in comparative financial statements.Lincoln CompanyComparative Balance SheetDecember 31, 2006 and 2005 AssetsCurrent assets$ 550,000$ 533,000$ 17,000 3.2%Long-term investments95,000177,500(82,500)(46.5%)Fixed assets (net)444,50

5、0470,000(25,500)(5.4%)Intangible assets50,00050,000 Total assets $1,139,500$1,230,500$ (91,000)(7.4%) LiabilitiesCurrent liabilities$ 210,000$ 243,000$ (33,000)(13.6%)Long-term liabilities100,000200,000(100,000) (50.0%) Total liabilities $ 310,000$ 443,000$(133,000)(30.0%) Stockholders EquityPreferr

6、ed 6% stock, $100 par$ 150,000$ 150,000 Common stock, $10 par500,000500,000 Retained earnings179,500137,500$42,000 30.5%Total stockholders equity $ 829,500$ 787,500$42,000 5.3%Total liab. & SE $1,139,500$1230,500$(91,000)(7.4%) 20062005AmountPercentIncrease (Decrease) AssetsCurrent assets$ 550,0

7、00$ 533,000$ 17,000 3.2%Long-term investments95,000177,500(82,500)(46.5%)Fixed assets (net)444,500470,000(25,500)(5.4%)Intangible assets50,00050,000 Total assets $1,139,500$1,230,500$ (91,000)(7.4%) LiabilitiesCurrent liabilities$ 210,000$ 243,000$ (33,000)(13.6%)Long-term liabilities100,000200,000(

8、100,000) (50.0%) Total liabilities $ 310,000$ 443,000$(133,000)(30.0%) Stockholders EquityPreferred 6% stock, $100 par $ 150,000$ 150,000 Common stock, $10 par500,000500,000 Retained earnings179,500137,500$42,000 30.5%Total stockholders equity $ 829,500$ 787,500$42,000 5.3%Total liab. & SE $1,13

9、9,500$1230,500$(91,000)(7.4%)Lincoln CompanyComparative Balance SheetDecember 31, 2006 and 2005 Difference$17,000Base year (2005)$533,000= 3.2%20062005AmountPercentIncrease (Decrease) AssetsCurrent assets$ 550,000$ 533,000$ 17,000 3.2%Long-term investments95,000177,500(82,500)(46.5%)Fixed assets (ne

10、t)444,500470,000(25,500)(5.4%)Intangible assets50,00050,000 Total assets $1,139,500$1,230,500$ (91,000)(7.4%) LiabilitiesCurrent liabilities$ 210,000$ 243,000$ (33,000)(13.6%)Long-term liabilities100,000200,000(100,000) (50.0%) Total liabilities $ 310,000$ 443,000$(133,000)(30.0%) Stockholders Equit

11、yPreferred stock, $100 par$ 150,000$ 150,000 Common stock, $10 par500,000500,000 Retained earnings179,500137,500$42,000 30.5%Total stockholders equity $ 829,500$ 787,500$42,000 5.3%Total liab. & SE $1,139,500$1230,500$(91,000)(7.4%) Difference$(82,500)Base year (2005)$177,500= (46.5%)Lincoln Com

12、panyComparative Balance SheetDecember 31, 2006 and 200520062005AmountPercentIncrease (Decrease) AssetsCurrent assets$ 550,000$ 533,000$ 17,000 3.2%Long-term investments95,000177,500(82,500)(46.5%)Fixed assets (net)444,500470,000(25,500)(5.4%)Intangible assets50,00050,000 Total assets $1,139,500$1,23

13、0,500$ (91,000)(7.4%) LiabilitiesCurrent liabilities$ 210,000$ 243,000$ (33,000)(13.6%)Long-term liabilities100,000200,000(100,000) (50.0%) Total liabilities $ 310,000$ 443,000$(133,000)(30.0%) Stockholders EquityPreferred 6% stock, $100 par$ 150,000$ 150,000 Common stock, $10 par500,000500,000 Reta

14、ined earnings179,500137,500$42,000 30.5%Total stockholders equity $ 829,500$ 787,500$42,000 5.3%Total liab. & SE $1,139,500$1230,500$(91,000)(7.4%) Difference?Base year (2005)?= ?Lincoln CompanyComparative Balance SheetDecember 31, 2006 and 200520062005AmountPercentIncrease (Decrease)Okay, go to

15、 the next slide and calculate the percentage change for fixed assets. AssetsCurrent assets$ 550,000$ 533,000$ 17,000 3.2%Long-term investments95,000177,500(82,500)(46.5%)Fixed assets (net)444,500470,000(25,500)(5.4%)Intangible assets50,00050,000 Total assets $1,139,500$1,230,500$ (91,000)(7.4%) Liab

16、ilitiesCurrent liabilities$ 210,000$ 243,000$ (33,000)(13.6%)Long-term liabilities100,000200,000(100,000) (50.0%) Total liabilities $ 310,000$ 443,000$(133,000)(30.0%) Stockholders EquityPreferred 6% stock, $100 par$ 150,000$ 150,000 Common stock, $10 par500,000500,000 Retained earnings179,500137,50

17、0$42,000 30.5%Total stockholders equity $ 829,500$ 787,500$42,000 5.3%Total liab. & SE $1,139,500$1230,500$(91,000)(7.4%)Lincoln CompanyComparative Balance SheetDecember 31, 2006 and 200520062005AmountPercentIncrease (Decrease) AssetsCurrent assets$ 550,000$ 533,000$ 17,000 3.2%Long-term investm

18、ents95,000177,500(82,500)(46.5%)Fixed assets (net)444,500470,000(25,500)(5.4%)Intangible assets50,00050,000 Total assets $1,139,500$1,230,500$ (91,000)(7.4%) LiabilitiesCurrent liabilities$ 210,000$ 243,000$ (33,000)(13.6%)Long-term liabilities100,000200,000(100,000) (50.0%) Total liabilities $ 310,

19、000$ 443,000$(133,000)(30.0%) Stockholders EquityPreferred 6% stock, $100 par$ 150,000$ 150,000 Common stock, $10 par500,000500,000 Retained earnings179,500137,500$42,000 30.5%Total stockholders equity $ 829,500$ 787,500$42,000 5.3%Total liab. & SE $1,139,500$1230,500$(91,000)(7.4%)Lincoln Compa

20、nyComparative Balance SheetDecember 31, 2006 and 2005(5.4%)20062005AmountPercentIncrease (Decrease)Sales$1,530,500$1,234,000$296,500 24.0%Sales returns32,50034,000(1,500)(4.4%)Net sales$1,498,000$1,200,000$298,000 24.8%Cost of goods sold1,043,000820,000223,000 27.2% Gross profit $ 455,000$ 380,000$

21、75,000 19.7%Selling expenses$ 191,000$ 147,000$ 44,000 29.9%Administrative expenses104,00097,4006,600 6.8%Total operating expenses$ 295,000$ 244,400$ 50,600 20.7%Operating income$ 160,000$ 135,600$ 24,400 18.0%Other income8,50011,000(2,500)(22.7%) $ 168,500$ 146,600$ 21,900 14.9%Other expense6,00012

22、,000(6,000)(50.0%)Income before income tax$ 162,500$ 134,600$ 27,900 20.7%Income tax71,50058,10013,400 23.1%Net income$ 91,000$ 76,500$ 14,500 19.0%Lincoln CompanyComparative Income StatementDecember 31, 2006 and 200520062005AmountPercentIncrease (Decrease)Sales$1,530,500$1,234,000$296,500 24.0%Sale

23、s returns32,50034,000(1,500)(4.4%)Net sales$1,498,000$1,200,000$298,000 24.8%Cost of goods sold1,043,000820,000223,000 27.2% Gross profit $ 455,000$ 380,000$ 75,000 19.7%Selling expenses$ 191,000$ 147,000$ 44,000 29.9%Administrative expenses104,00097,4006,600 6.8% Total operating expenses$ 295,000$

24、244,400$ 50,600 20.7%Operating income$ 160,000$ 135,600$ 24,400 18.0%Other income8,50011,000(2,500)(22.7%) $ 168,500$ 146,600$ 21,900 14.9%Other expense6,00012,000(6,000)(50.0%)Income before income tax$ 162,500$ 134,600$ 27,900 20.7%Income tax71,50058,10013,400 23.1%Net income$ 91,000$ 76,500$ 14,50

25、0 19.0%Increase amount $296,500Base year (2005) $1,234,000= 24.0%24.0%Lincoln CompanyComparative Income StatementDecember 31, 2006 and 200520062005AmountPercentIncrease (Decrease)Sales$1,530,500$1,234,000$296,500 24.0%Sales returns32,50034,000(1,500)(4.4%)Net sales$1,498,000$1,200,000$298,000 24.8%C

26、ost of goods sold1,043,000820,000223,000 27.2% Gross profit $ 455,000$ 380,000$ 75,000 19.7%Selling expenses$ 191,000$ 147,000$ 44,000 29.9%Administrative expenses104,00097,4006,600 6.8% Total operating expenses$ 295,000$ 244,400$ 50,600 20.7%Operating income$ 160,000$ 135,600$ 24,400 18.0%Other inc

27、ome8,50011,000(2,500)(22.7%) $ 168,500$ 146,600$ 21,900 14.9%Other expense6,00012,000(6,000)(50.0%)Income before income tax$ 162,500$ 134,600$ 27,900 20.7%Income tax71,50058,10013,400 23.1%Net income$ 91,000$ 76,500$ 14,500 19.0%Increase amount $298,000Base year (2005) $1,200,000= 24.8%24.8%Lincoln

28、CompanyComparative Income StatementDecember 31, 2006 and 200520062005AmountPercentIncrease (Decrease)A percentage analysis can be used to show the relationship of each component to a total within a single statement.The total, or 100% item, on the balance sheet is “total assets.”Lincoln CompanyCompar

29、ative Balance Sheet AssetsCurrent assets$ 550,00048.3%$ 533,00043.3%Long-term investments95,0008.3177,50014.4Property, plant, & equip. (net)444,50039.0470,00038.2Intangible assets50,0004.450,0004.1Total assets$1,139,500100.0%$1,230,500100.0% LiabilitiesCurrent liabilities$ 210,00018.4%$ 243,0001

30、9.7%Long-term liabilities100,0008.8200,00016.3Total liabilities$ 310,00027.2%$ 443,00036.0% Stockholders EquityPreferred stock, 6%, $100 par $ 150,00013.2%$ 150,000 12.2% Common stock, $10 par500,00043.9500,00040.6Retained earnings179,50015.7137,50011.2Total stockholders equity$ 829,50072.8%$ 787,50

31、064.0% Total liab. & SE$1,139,500100.0%$1,230,500100.0% December 31, 2006 December 31, 2005 AmountPercentAmountPercentCurrent assets $550,000Total assets $1,139,500= 48.3%48.3%Lincoln CompanyComparative Balance Sheet AssetsCurrent assets$ 550,00048.3%$ 533,00043.3%Long-term investments95,0008.31

32、77,50014.4Property, plant, & equip. (net)444,50039.0470,00038.2Intangible assets50,0004.450,0004.1Total assets$1,139,500100.0%$1,230,500100.0% LiabilitiesCurrent liabilities$ 210,00018.4%$ 243,00019.7%Long-term liabilities100,0008.8200,00016.3Total liabilities$ 310,00027.2%$ 443,00036.0% Stockho

33、lders EquityPreferred 6% stock, $100 par $ 150,00013.2%$ 150,000 12.2% Common stock, $10 par500,00043.9500,00040.6Retained earnings179,50015.7137,50011.2Total stockholders equity$ 829,50072.8%$ 787,50064.0% Total liab. & SE$1,139,500100.0%$1,230,500100.0%Current assets $533,000Total assets $1,23

34、0,500= 43.3%43.3% December 31, 2006 December 31, 2005 AmountPercentAmountPercentLincoln CompanyComparative Balance Sheet AssetsCurrent assets$ 550,00048.3%$ 533,00043.3%Long-term investments95,0008.3177,50014.4Property, plant, & equip. (net)444,50039.0470,00038.2Intangible assets50,0004.450,0004

35、.1Total assets$1,139,500100.0%$1,230,500100.0% LiabilitiesCurrent liabilities$ 210,00018.4%$ 243,00019.7%Long-term liabilities100,0008.8200,00016.3Total liabilities$ 310,00027.2%$ 443,00036.0% Stockholders EquityPreferred 6% stock, $100 par$ 150,00013.2%$ 150,000 12.2% Common stock, $10 par500,00043

36、.9500,00040.6Retained earnings179,50015.7137,50011.2Total stockholders equity$ 829,50072.8%$ 787,50064.0% Total liab. & SE$1,139,500100.0%$1,230,500100.0% December 31, 2006 December 31, 2005 AmountPercentAmountPercentSales$1,530,500102.2% $1,234,000102.8%Sales returns32,5002.234,0002.8Net sales$

37、1,498,000100.0% $1,200,000100.0%Cost of goods sold1,043,00069.6820,00068.3Gross profit $ 455,00030.4%$ 380,00031.7%Selling expenses$ 191,00012.8%$ 147,00012.3%Administrative expenses104,0006.997,4008.1Total operating expenses$ 295,00019.7%$ 244,40020.4%Income from operations$ 160,00010.7$ 135,60011.

38、3%Other income8,5000.611,0000.9 $ 168,50011.3%$ 146,60012.2%Other expense6,0000.412,0001.0Income before income tax$ 162,50010.9%$ 134,60011.2%Income tax expense71,5004.858,1004.8Net income$ 91,0006.1%$ 76,5006.4% 2006 2005 Amount Percent Amount PercentLincoln CompanyComparative Income StatementFor t

39、he Years Ended December 31, 2006 and 2005Lincoln CompanyComparative Income StatementFor the Years Ended December 31, 2006 and 2005Sales$1,530,500102.2% $1,234,000102.8%Sales returns32,5002.234,0002.8Net sales$1,498,000100.0% $1,200,000100.0%Cost of goods sold1,043,00069.6820,00068.3Gross profit $ 45

40、5,00030.4%$ 380,00031.7%12.8%$ 147,00012.3%Administrative expenses104,0006.997,4008.1Total operating expenses$ 295,00019.7%$ 244,40020.4%Income from operations$ 160,00010.7$ 135,60011.3%Other income8,5000.611,0000.9 $ 168,50011.3%$ 146,60012.2%Other expense6,0000.412,0001.0Income before income tax$

41、162,50010.9%$ 134,60011.2%Income tax expense71,5004.858,1004.8Net income$ 91,0006.1%$ 76,5006.4% 2006 2005 Amount Percent Amount PercentSelling expenses $191,000Net sales $1,498,000= 12.8%12.8%Sales$1,530,500102.2% $1,234,000102.8%Sales returns32,5002.234,0002.8Net sales$1,498,000100.0% $1,200,00010

42、0.0%Cost of goods sold1,043,00069.6820,00068.3Gross profit $ 455,00030.4%$ 380,00031.7%Selling expenses$ 191,00012.8%$ 147,00012.3%Administrative expenses104,0006.997,4008.1Total operating expenses$ 295,00019.7%$ 244,40020.4%Income from operations$ 160,00010.7$ 135,60011.3%Other income8,5000.611,000

43、0.9 $ 168,50011.3%$ 146,60012.2%Other expense6,0000.412,0001.0Income before income tax$ 162,50010.9%$ 134,60011.2%Income tax expense71,5004.858,1004.8Net income$ 91,0006.1%$ 76,5006.4% 2006 2005 Amount Percent Amount PercentLincoln CompanyComparative Income StatementFor the Years Ended December 31,

44、2006 and 2005Sales$1,530,500102.2% $1,234,000102.8%Sales returns32,5002.234,0002.8Net sales$1,498,000100.0% $1,200,000100.0%Cost of goods sold1,043,00069.6820,00068.3Gross profit $ 455,00030.4%$ 380,00031.7%Selling expenses$ 191,00012.8%$ 147,00012.3%Administrative expenses104,0006.997,4008.1Total o

45、perating expenses$ 295,00019.7%$ 244,40020.4%Income from operations$ 160,00010.7$ 135,60011.3%Other income8,5000.611,0000.9 $ 168,50011.3%$ 146,60012.2%Other expense6,0000.412,0001.0Income before income tax$ 162,50010.9%$ 134,60011.2%Income tax expense71,5004.858,1004.8Net income$ 91,0006.1%$ 76,500

46、6.4% 2006 2005 Amount Percent Amount PercentLincoln CompanyComparative Income StatementFor the Years Ended December 31, 2006 and 2005Sales$1,530,500102.2% $1,234,000102.8%Sales returns32,5002.234,0002.8Net sales$1,498,000100.0% $1,200,000100.0%Cost of goods sold1,043,00069.6820,00068.3Gross profit $

47、 455,00030.4%$ 380,00031.7%Selling expenses$ 191,00012.8%$ 147,00012.3%Administrative expenses104,0006.997,4008.1Total operating expenses$ 295,00019.7%$ 244,40020.4%Income from operations$ 160,00010.7$ 135,60011.3%Other income8,5000.611,0000.9 $ 168,50011.3%$ 146,60012.2%Other expense6,0000.412,0001

48、.0Income before income tax$ 162,50010.9%$ 134,60011.2%Income tax expense71,5004.858,1004.8Net income$ 91,0006.1%$ 76,5006.4% 2006 2005 Amount Percent Amount PercentLincoln CompanyComparative Income StatementFor the Years Ended December 31, 2006 and 2005Vertical analysis with both dollar and percenta

49、ge amounts is also useful in comparing one company with another or with industry averages. Such comparisons are easier to make with the use of common-size statements in which all items are expressed in percentages. Solvency is the ability of a business to meet its financial obligations (debts) as th

50、ey are due. Solvency analysis focuses on the ability of a business to pay or otherwise satisfy its current and noncurrent liabilities. This ability is normally assessed by examining balance sheet relationships.Current assets $550,000$533,000Current liabilities 210,000 243,000Working capital$340,000$

51、290,000Use: To indicate the ability to meet currently maturing obligations.2006 2005Divide current assets by current liabilitiesUse: To indicate instant debt-paying ability. 20062005Quick assets:Cash$ 90,500$ 64,700Marketable securities 75,00060,000Accounts receivable (net)115,000120,000 Total$280,5

52、00$244,700Current liabilities$210,000$243,000Net sales on account$1,498,000$1,200,000Accounts receivable (net):Beginning of year$ 120,000$ 140,000End of year 115,500120,000Total$ 235,000$ 260,000Average (Total 2)$ 117,500$ 130,000 20062005 Net sales on accountAverage accounts receivableUse: To asses

53、s the efficiency in collecting receivables and in the management of credit.Net sales on account$1,498,000$1,200,000Accounts receivable (net):Beginning of year$ 120,000$ 140,000End of year 115,500120,000Total$ 235,000$ 260,000Average$ 117,500$ 130,000 20062005Accounts receivable (net),end of year$ 11

54、5,000$ 120,000Net sales on account$1,498,000$1,200,000Average daily sales onaccount (sales 365)$ 4,104$ 3,288 20062005Accounts receivable, end of yearAverage daily sales on accountUse: To assess the efficiency in collecting receivables and in the management of credit.Accounts receivable (net),end of

55、 year$ 115,000$ 120,000Net sales on account$1,498,000$1,200,000Average daily sales onaccount (sales 365)$ 4,104$ 3,288 2006200520062005Cost of goods sold$1,043,000$ 820,000Inventories:Beginning of year$ 283,000$ 311,000End of year 264,000283,000Total$ 547,000$ 594,000Average (Total 2)$ 273,500$ 297,

56、000Cost of goods soldAverage inventoryInventory turnover =Use: To assess the efficiency in the management of inventory.20062005Cost of goods sold$1,043,000$ 820,000Inventories:Beginning of year$ 283,000$ 311,000End of year 264,000283,000Total$ 547,000$ 594,000Average (Total 2)$ 273,500$ 297,00020062

57、005Inventories, end of year$ 264,000$283,000Cost of goods sold$1,043,000$820,000Average daily cost ofgoods sold (COGS 365)$ 2,858$ 2,247Inventories, end of yearAverage daily cost of goods soldNumber of Days Sales in Inventory=Use:To assess the efficiency in the management of inventory.Inventories, e

58、nd of year$ 264,000$283,000Cost of goods sold$1,043,000$820,000Average daily cost ofgoods sold (COGS 365)$ 2,858$ 2,24720062005Use: To indicate the margin of safety to long-term creditors.20062005Fixed assets (net)$444,500$470,000Long-term liabilities$100,000$200,000Use: To indicate the margin of sa

59、fety to creditors.Total liabilities$310,000$443,000Total stockholders equity$829,500$787,5002006200520062005Income before income tax$ 900,000$ 800,000Add interest expense 300,000 250,000Amount available for interest$1,200,000 $1,050,000Income beforeincome tax + interest expenseInterest expenseNumber

60、 of Times Interest Charges Earned=Use: To assess the risk to debtholders in terms of number of times interest charges were earned.20062005Income before income tax$ 900,000$ 800,000Add interest expense 300,000 250,000Amount available for interest$1,200,000 $1,050,000Profitability is the ability of an entity to earn profits.This ability to earn