
Horizontal Analysis:
Horizontal analysis is a method financial statement analysis which compares the components available in the financial statements of over specified period.
Vertical Analysis:
Vertical analysis of income statement is performed by computing percentage of revenues and expenses with the net sale during the same period.
Ratio Analysis:
The financial ratios which indicates the performance of a business operationally and financially is called ratio analysis.
To determine:
1. Performing a horizontal analysis on the
2. Performing vertical analysis on the income statement of Riverside Sweets.
3. Computation of Ratios:
a.
b.
c. Acid-Test Ratio
d. Cash Ratio
e.
f. Days’ Sales in Receivables
g. Inventory Turnover
h. Days’ Sales in Inventory
i. Gross Profit Percentage
j. Debt Ratio
k. Debt to Equity Ratio
l. Times-Interest-Earned Ratio
m. Profit Margin Ratio
n.
o. Asset Turnover Ratio
p. Rate of Return on Common
q. Earnings per Share
r. Price/Earnings Ratio
s. Dividend Yield
t. Dividend Payout

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Chapter 17 Solutions
ACCOUNTING PRINCIPLES V1 6/17 >C<
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