Vertical analysis: Vertical analysis is the method of financial statement analysis, and it is useful to evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing the each item on a financial statement with a total amount from the same statement. In the vertical analysis, the financial statements are analyzed in the following manner: In vertical analysis of a balance sheet , each asset item is stated as a percent of the total asset, and each liability and owner’s equity item is stated as a percent of total liabilities and owner’s equity. In vertical analysis of an income statement , each item of revenue and expense is stated as a percent of total revenues of the business. The amount and percentage of change in the net income from year 1 to year 2.

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correct answer please general accounting

Answer 1

Question

Chapter 3, Problem 3.3ADM

A.

To determine

Vertical analysis:

Vertical analysis is the method of financial statement analysis, and it is useful to evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing the each item on a financial statement with a total amount from the same statement. In the vertical analysis, the financial statements are analyzed in the following manner:

In vertical analysis of a balance sheet, each asset item is stated as a percent of the total asset, and each liability and owner’s equity item is stated as a percent of total liabilities and owner’s equity.

In vertical analysis of an income statement, each item of revenue and expense is stated as a percent of total revenues of the business.

The amount and percentage of change in the net income from year 1 to year 2.

B.

To determine

The percentage relationship between net income and sales of year 2 and year 1.

C.

To determine

To explain: The conclusion drawn from the analysis.

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correct answer please general accounting

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The current year is as follows

Answer 2

Question

Chapter 3, Problem 3.3ADM

A.

To determine

Vertical analysis:

Vertical analysis is the method of financial statement analysis, and it is useful to evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing the each item on a financial statement with a total amount from the same statement. In the vertical analysis, the financial statements are analyzed in the following manner:

In vertical analysis of a balance sheet, each asset item is stated as a percent of the total asset, and each liability and owner’s equity item is stated as a percent of total liabilities and owner’s equity.

In vertical analysis of an income statement, each item of revenue and expense is stated as a percent of total revenues of the business.

The amount and percentage of change in the net income from year 1 to year 2.

B.

To determine

The percentage relationship between net income and sales of year 2 and year 1.

C.

To determine

To explain: The conclusion drawn from the analysis.

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Answer 3

Question

Chapter 3, Problem 3.3ADM

A.

To determine

Vertical analysis:

Vertical analysis is the method of financial statement analysis, and it is useful to evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing the each item on a financial statement with a total amount from the same statement. In the vertical analysis, the financial statements are analyzed in the following manner:

In vertical analysis of a balance sheet, each asset item is stated as a percent of the total asset, and each liability and owner’s equity item is stated as a percent of total liabilities and owner’s equity.

In vertical analysis of an income statement, each item of revenue and expense is stated as a percent of total revenues of the business.

The amount and percentage of change in the net income from year 1 to year 2.

B.

To determine

The percentage relationship between net income and sales of year 2 and year 1.

C.

To determine

To explain: The conclusion drawn from the analysis.

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Answer 4

Question

Chapter 3, Problem 3.3ADM

A.

To determine

Vertical analysis:

Vertical analysis is the method of financial statement analysis, and it is useful to evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing the each item on a financial statement with a total amount from the same statement. In the vertical analysis, the financial statements are analyzed in the following manner:

In vertical analysis of a balance sheet, each asset item is stated as a percent of the total asset, and each liability and owner’s equity item is stated as a percent of total liabilities and owner’s equity.

In vertical analysis of an income statement, each item of revenue and expense is stated as a percent of total revenues of the business.

The amount and percentage of change in the net income from year 1 to year 2.

B.

To determine

The percentage relationship between net income and sales of year 2 and year 1.

C.

To determine

To explain: The conclusion drawn from the analysis.

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Answer 5

Chapter 3, Problem 3.3ADM

A.

To determine

Vertical analysis:

Vertical analysis is the method of financial statement analysis, and it is useful to evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing the each item on a financial statement with a total amount from the same statement. In the vertical analysis, the financial statements are analyzed in the following manner:

In vertical analysis of a balance sheet, each asset item is stated as a percent of the total asset, and each liability and owner’s equity item is stated as a percent of total liabilities and owner’s equity.

In vertical analysis of an income statement, each item of revenue and expense is stated as a percent of total revenues of the business.

The amount and percentage of change in the net income from year 1 to year 2.

B.

To determine

The percentage relationship between net income and sales of year 2 and year 1.

C.

To determine

To explain: The conclusion drawn from the analysis.

Answer 6

Chapter 3, Problem 3.3ADM

A.

To determine

Vertical analysis:

Vertical analysis is the method of financial statement analysis, and it is useful to evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing the each item on a financial statement with a total amount from the same statement. In the vertical analysis, the financial statements are analyzed in the following manner:

In vertical analysis of a balance sheet, each asset item is stated as a percent of the total asset, and each liability and owner’s equity item is stated as a percent of total liabilities and owner’s equity.

In vertical analysis of an income statement, each item of revenue and expense is stated as a percent of total revenues of the business.

The amount and percentage of change in the net income from year 1 to year 2.

Answer 7

Chapter 3, Problem 3.3ADM

A.

To determine

Vertical analysis:

Vertical analysis is the method of financial statement analysis, and it is useful to evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing the each item on a financial statement with a total amount from the same statement. In the vertical analysis, the financial statements are analyzed in the following manner:

In vertical analysis of a balance sheet, each asset item is stated as a percent of the total asset, and each liability and owner’s equity item is stated as a percent of total liabilities and owner’s equity.

In vertical analysis of an income statement, each item of revenue and expense is stated as a percent of total revenues of the business.

The amount and percentage of change in the net income from year 1 to year 2.

Answer 8

B.

To determine

The percentage relationship between net income and sales of year 2 and year 1.

Answer 9

B.

To determine

The percentage relationship between net income and sales of year 2 and year 1.

Answer 10

C.

To determine

To explain: The conclusion drawn from the analysis.

Answer 11

C.

To determine

To explain: The conclusion drawn from the analysis.

Answer 12

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Answer 23

Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Is the matching concept related to (A) the cash...Ch. 3 - Why are adjusting entries needed at the end of an...Ch. 3 - What is the difference between adjusting entries...Ch. 3 - Identify the four different categories of...Ch. 3 - If the effect of the debit portion of an adjusting...Ch. 3 - If the effect of the credit portion of an...Ch. 3 - Prob. 8DQ Ch. 3 - Prob. 9DQ Ch. 3 - (A) Explain the purpose of the two accounts:...

The percentage relationship between net income and sales of year 2 and year 1.

To explain: The conclusion drawn from the analysis.

Chapter 3 Solutions