• Financial Analysis

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• Step 1 of 5

  The common size incomes statement is obtained by dividing eachincome statement line item by net revenues and common size balancesheet is obtained by dividing each balance sheet line item by totalAssets. Therefore, the incomes statement is created on percent ofnet revenues basis and the balance sheet is created with percent oftotal assets basis.

• Step 2 of 5

  The common size income statement is prepared by dividing each ofthe line item by the Net Revenues for each year of 2013 and 2012.Thereafter each line item shall come in a percent of net revenuesbasis.

• Step 3 of 5

  The percent of Net Revenue for each income statement line itemis calculated by dividing each line item by the Net Revenues. Forexample the percent of Net Revenue for the line item TotalOperating Expenses is calculated by dividing the Total OperatingExpenses by the Net Revenue, similarly percent of Net Revenue forthe line item Operating income/ (loss) is calculated by dividingthe Operating income/ (loss) by the Net Revenue and follow thisprocess for each of the income statement line item to come up withthe common size statement with each item on a percent basis of theNet Revenue.

• Step 4 of 5
  The common size balance sheet is prepared bydividing each of the line item by the Total Assets for each year of2013 and 2012. Thereafter each line item shall come in a percent ofTotal Assets basis.
• Step 5 of 5

  The percent of Total Assets for each balance sheet line item iscalculated by dividing each line item by the Total Assets. Forexample the percent of Total Assets for the line item Cash and cashequivalents is calculated by dividing the Cash and cash equivalentsby the Total Assets, similarly percent of Total Assets for the lineitem Long-term investments is calculated by dividing the Long-terminvestments by the Total Assets and follow this process for each ofthe balance sheet line item to come up with the common sizestatement with each item on a percent basis of the TotalAssets.

CASES IN FINANCIAL REPORTING, 1E contains new, comprehensive and engaging cases on topics for accounting and related courses. Helpful background notes accompany cases on key topics such as fair-value reporting, discounted cash flows, and retiree benefits.

Product Information

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Product Identifiers

• McGraw-Hill
• 126011726x
• 9781260117264
• 242768639

Product Key Features

• Hardcover
• 2018
• English

Additional Product Features

Financial Analysis

• 23
• 657/.3
• 2018
• Jeremy Perler, Yoni Engelhart, Howard M. Schilit
• 4
• 336 Pages
• Hf5681.B2s3243 2018
• 2018-03-30
• 2017-051533