Financial statements analysis assignments Classification

CHAPTER 18
Financial Statement Analysis


ASSIGNMENT CLASSIFICATION TABLE

Brief
Study Objectives Questions Exercises Exercises Problems



1. Discuss the need for comparative 1, 2, 3, 5 1
analysis.
2. Identify the tools of financial statement 2, 3, 5, 6 2
analysis.

3. Explain and apply horizontal analysis. 3, 4, 5 2, 3, 5, 6, 7 1 , 3, 4

4. Describe and apply vertical analysis. 3, 4, 5 2, 4, 8 2, 3, 4 1
5. Identify and compute ratios used in 5, 6, 7, 8, 9, 2, 9, 10, 11, 5, 6, 7, 8, 1 , 2, 3,
analyzing a firm’s liquidity, profitability, 10, 11,12, 13, 12, 13 9, 10, 11 4,
and solvency. 14 , 15, 16, 17, 5 , 6, 7
18 , 19
6. Understand the concept of earning 20, 21, 22, 23 14, 15 12, 13 8, 9
power, and how irregular items are
presented.

7. Understand the concept of quality 24
of earnings.

, 18 -1
ASSIGNMENT CHARACTERISTICS TABLE

Problem Difficulty Time
Number Level Allotted
Description (min.)



1 Prepare vertical analysis and comment on profitability. Simple 20 – 30

2 Compute ratios from balance sheet and income statement. Simple 20 – 30

3 Perform ratio analysis, and evaluate financial position Simple 20 – 30 and operating results.

4 Compute ratios, and comment on overall liquidity and Moderate 30 – 40 profitability.

5 Compute selected ratios, and compare liquidity, profitability, Moderate 50 – 60 and solvency for two
companies.

6 Compute numerous ratios. Simple 30 – 40

7 Compute missing information given a set of ratios. Complex 30 – 40

8 Prepare income statement with discontinued operations Moderate 30 – 40 and extraordinary
loss.

9 Prepare income statement with nontypical items. Moderate 30 – 40




18- 2

,Correlation Chart between Bloom’s Taxonomy, Study Objectives and End-of-Chapter Exercises and Problems
BLOOM’S TAXONOMY TABLE

,
1.
18-3
ANSWERS
QUESTIONS
Study Objective Knowledge Comprehension Application Analysis Synthesis Evaluation

.Discuss
analysi the need for Q18-1 Q18-5
comparative Q18-2 BE18-1
1 s.
Q18-3

.Identify the tools of
statement Q18-6 Q18-2 Q18-5BE18-2
financial BE18-2 Q18-3
2 analysis.
.Explain
analysi and apply BE18-2 Q18-3 Q18-4 BE18-7
horizontal Q18-5 BE18-2 E18-1
3 s.
BE18-3 E18-3
BE18-5 E18-4
BE18-6

.Describe BE18-2 Q18-3 Q18-4 E18-2 P18-1
(a)




analysi and apply
vertical Q18-5 BE18-2 E18-3
4 s.




18- 4
BE18-4 E18-4
BE18-8

.Identify and compute Q18-6 Q18-5 Q18-13 Q18-19 E18-8 BE18-11 P18-2




and solvency.
used in analyzing a Q18-8 Q18-7 Q18-14 BE18-2 E18-9 BE18-12 P18-3
ratios
liquidity,
solvenc
firm’s BE18-2 Q18-9 Q18-15 BE18-9 E18-10 BE18-13 P18-4
profitability, and
5 y. Q18-10 Q18-16 BE18-10 P18-2 E18-5 P18-5
Q18-11 Q18-17 E18-6 P18-3 E18-11 P18-7
Q18-12 Q18-18 E18-7 P18-6 P18-1




are primarily interested in the profitability and solvency of the company.
.Understand the concept Q18-20 Q18-23 BE18-14 E18-13
earning power, and Q18-21 BE18-15 P18-8
ofirregular items are
how Q18-22 E18-12 P18-9
6 presented.
.Understand
quality of the Q18-24
7 concept of
earnings.

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(b) The three parties are not primarily interested in the same characteristics of a company. Short-term creditors
are primarily interested in the liquidity of the enterprise. In contrast, long-term creditors and stockholders
correct. There are three characteristics: liquidity, profitability,
is not