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.