1.
Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.
The
2.
Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.
To prepare: The common-size percent.
3.
Introduction: Trend analysis represents the trend percents patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:
The trend analysis for the
4.
Introduction: Vertical analysis is done as a comparison or defining of the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.
The portion cost of goods sold to make up for sales is a greater portion or not, income as a percent of sales improve in the most recent year or not, and the growth of plant assets over the period.

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Chapter 13 Solutions
FIN & MGR ACCOUNTING W/ACCESS
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