Ratio, Vertical, and Horizontal Analyses

629 Words Feb 18th, 2012 3 Pages
Ratio, Vertical, and Horizontal Analyses
Kelli Lorenc
XACC/280
February 5, 2012
Kerri Gooley

Ratio, Vertical, and Horizontal Analyses

According to "Accounting for Management" (2011), “Financial statement analysis is defined as the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account.” (Definition and Explanation of Financial Statement Analysis:). There are many tools used to evaluate the significance of a financial statement. The three most common tools used are as follows: First, ratio analysis which is a method used to analyze financial statements in order to determine a business overall
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B2 in Appendix B of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2005 and 2004.
Calculate the following for Coca-Cola and show your work:

The current ratio of any company is calculated with the use of the following equation Current Ratio= Current
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