Accounting Unit 4 Ip

It is important for the owner of firm to analyze the financial data. The owner must conduct this task in order to have a successful business. I chose the company Cracker Barrel from the food industry to analyze the financial statements. The financial statement includes the result from the year 2009 through 2010. The individual must get familiar with the financial documents. The financial statement help determines a firm’s financial position during a certain period of time. Preparing the analysis can be very difficult to prepare if the individual is not familiar with the documents. The income statement is the most important document in conducting the process. It is the major document the show the financial stability of the company. The revenue earned must be analyzed during the process. The balance sheet must also be analyzed. The balance sheet show what assets you own. Also, the balance sheet displays the company’s financial position during a period of time. A trend analysis is a comparative analysis identifies present and future movements of the company’s investment. The trend analysis can be used to identify and project upswings in the performance of the company. It compares the financial ratio of the past with the present and finds key factors that helped the company financial. A ratio analysis is a tool that is used to conduct a quantitative analysis of data of the company financial statements. The ratios are calculated from the current year numbers and then compared to the previous year numbers. The ratio analysis can determine the strength of a company. This is a very helpful tool on how the analysis is prepared. The percentage analysis calculates the percentage change between two periods of time.

Total Revenue

Total revenue for the second quarter of 2010 increased 0.4% compared to the prior year second quarter. For the quarter, comparable store restaurant sales decreased 0.2% and comparable store retail sales decreased 3.0% resulting in a combined...