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Date Submitted: 10/13/2011 11:14 PM
ACCOUNTING (STATEMENT ANALYSIS) 525 MARKING GUIDE: Group assignment Student Name(s) Student Number
Marks Allocated
Part 1 Vertical Analysis Income Statement: 1(a) Description of the trend in Net Income for each year (1 mark each year x 3 years) 1(b) Reasons for the trend in Net Income: (1 mark for each year) (Full marks if the logic is correct e.g. an increase in Other Income cannot result in or explain a decrease in Net Income; a reasonable, non theoretical explanation of the trend is given). 2(a) Description of the trend in individual items for each year (1 mark for each year) COGS Operating Expenses Interest Expense Other Income/(Expenses) Taxes Related to Operations 2(b) Reasons for the trend in individual items: (½ mark for each year) COGS Operating Expenses Interest Expense Other Income/(Expenses) Taxes Related to Operations Balance Sheet 1. Describe the trend in: (between first & last year only) Total Current Assets Total Long Term Assets Total Current Liabilities Total Long Term Liabilities 2. Reasons for the trend in Sub Totals above: Total Current Assets Total Long Term Assets Total Current Liabilities Total Long Term Liabilities Total Equity (Full marks only if reasonable, non theoretical explanation of the trends are given). 1 1 1 1 1 0.5 0.5 0.5 0.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Marks Achieved
Part 2
Ratio Analysis Describe the trend (1 Mark) and reasons for the trend (1 Mark) for each ofthe following ratios: (between first & last year only) Liquidity Ratios Accounts Receivable Turnover and A/Rturnover in Days Inventory Turnover and Inventory Turnover in Days in Days Operating Cycle Current Ratio Acid Test Ratio Cash ratio Long Term Debt Payaing Ability Times Interest Earned Debt/Equity Cash Flow/Total Debt Profitability Net Profit Margin Total Asset Turnover Return on Assets Sales to Fixed assets Return on Investment Return on Common Equity Gross Profit Margin Investor Analysis Degree of Financial Leverage Percentage of...