会计数据分析 Solutions-Manual Chapter-8-EOC-Solutions-Manual-update

SolutionsManual–Chapter8

SolutionstoDiscussionQuestions

Answersmayvary.Thefinancialstatementsandthefootnotesaremuchmoreboilerplatewithplentyofrulesandlegalisticjargonandreflectpastperformance.TheM,D&A(managementdiscussionandanalysis)ofthefinancialstatementsIsalsointhe10-Kandisheavilyreviewedbythelegalteam.However,theM,D&Aalsoreflectsexpectationsofthefutureandhowthecompanyisexpectedtoperforminthenearfuture.Managementis,onaverage,moreoptimisticaboutthenearfuturethantherecentpast.WewouldexpecttheM,D,&Asectiontobeassociatedwithmorepositivesentimentthanthefootnotesorthefinancialstatements.

Answerswillvaryasthisisuptotheopinionoftheindividual.Sparklinesareasmalltrendlinesummarizingnumbersorstatisticsinagraphwithoutaxes.SparklinesseemmostusefultoreportinthesummaryortheManagement,Discussion,andAnalysissectionofthe10-Kjusttogiveaneffectivesummary.However,theyareprobablylessusefulifthefinancialstatementprepareristryingtousesparklinesforeverynumberonthefaceofthebalancesheetorincomestatement,justbecausethereisalreadysomuchinformationonthatpage.WhiletheSECisinfavorormakingthefinancialstatementsmoreaccessibletoallinvestors,includingthesmallinvestors.

Auditingstandards(e.gSAS132)requiretheauditortoassessanentity’sabilitytocontinueasagoingconcern.Ratiosarefrequentlyusedtoassessthispossibility.Analyticalprocedureswillassessitemslikenegativeprofitabilitytrends(profitabilityratioslikeROAandROS(i.e.,profitmargins)),slow-movinginventory(e.g.,inventoryturnoverratios),receivablecollectabilityproblems(e.g.,accountsreceivableturnoverratios),workingcapitalproblems(e.g.,currentratioandacid-testratio)andsolvencyratios(e.g.,debt-to-equityratios,timesinterestearned).

InterestExpenseisruleelementID1367andtheelementnameis“InterestExpense”.

Sales,GeneralandAdministrativeExpenseisruleelementID2378andtheelementnameis“SellingGeneralAndAdministrativeExpense”.

OtherNonOperatingIncomeisruleelement1881andtheelementnameis“OtherNoonoperatingIncome”.XBRLreportsthatthiswillnormallybeacredit.

ProfitMargin,OperatingMargin,ReturnonAssetsandReturnonEquityareallusefulinassessingprofitability.ThisinformationisevenmoreusefulifwecouldcomparetoApple’srecentpastaswellastheperformanceofthoseinthesameindustry.OtheritemslikeQuarterlyRevenueGrowthandlevelofrevenues,EBITDAandQuarterlyEarningsGrowthalsohelpustoassessprofitability.

Atahospital,XBRLmightbeusedtorecorddiagnoses,proceduresrun,andprescriptions.Universitiesmightuseittohelpwithregistration(coursenames,descriptions),reportingofgradesandtranscripts,overallstudentperformance,advising,etc.

Byassessingthewordsinblogs,socialmediaposts,etc.,companiescanknowwhatthepublicthinksofthemandtheirproducts.Thismightgivethemachancetoaddressboththeirweaknessesandstrengthsinfuturepublicrelationswork,addressissuesoremphasizestrengthsintheirproductdevelopment,etc.

Hospitalsanduniversitiescouldusesentimentinmuchthesameway.Theymightbeusedwhentryingtoattractnewpatientsandstudentstoseehowtheyareperceived.Foruniversitiesinterestedinfundraising,itmightbehelpfultoidentifyopportunitieswherealumniarepassionateandwoulddesiretohelpwiththeirtimes,talentsandtreasures.

SolutionstoProblems

Bothpressannouncementsandearningsreleasesareprimarilyfullofwords.Besidestheinformationreportedintheseannouncements,theremightbeinformationinthesentimentofthewordsusedthatmighttellhowoptimisticthewriterofthepressannouncementormanagementthatdevelopedtheearningsreleasemightbesharing.Textanalysisprogramscouldautomaticallyassessthelevelofsentimentandreportthatalongwiththeactualpressannouncementandearningsrelease.

Answerswillvary.Othernegativefinancialwordsmightincludeliability,encumbrance,obligation,contingency,etc.Positivewordsinafinancialdictionarymightincludewordslikeprofit,gain,margin,income,revenues,etc.

ForAmazon,thestockpriceclosedat964.17onJune15,2017andclosedat987.71onJune16,2017,anincreaseof$23.54,or2.44%.

ForWalmart,thestockpriceclosedat78.91onJune15,2017andclosedat75.24onJune16,2017,adecreaseof$3.67,or4.65%.

TheaveragetradingvolumeforWalmartbetween5/15/2017and6/15/2017was5,373,900sharestraded.On6/16/2017,therewere11,472,700sharestraded,morethantwotimes(2.86X)thenormaltradingvolume.Thepercentageincreaseis186%.

TheaveragetradingvolumeforWalmartbetween5/15/2017and6/15/2017was9,330,652sharestraded.On6/16/2017,therewere56,233,000sharestraded,morethansixtimes(6.03X)thenormaltradingvolume.Thepercentageincreaseis503%.

Answerswillvary.Negativewordsincludeabandon,abdicate,aberration,ab