Skip to main content
Business LibreTexts

12.1: Chapter 12 Study Plan

  • Page ID
    10681
  • 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.