COMMON-SIZE FINANCIAL STATEMENT ANALYSIS When all the items of a financial statement are expressed on a common basis‚ it is known as a common-size financial statement. Common-sizing of balance sheet is done generally by expressing its all items as a percentage of its total assets or total equities. Similarly‚ income statement is common-sized when its all items are expressed as percentage of total sales. PROCEDURE OF COMMON SIZING In preparing common-size income statement‚ the following procedure
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Common-Size Analysis When comparing financial statements‚ it is often necessary to compare successive years ’ statements of the same company or statements from companies of various sizes. Ordinary financial statements can make it difficult to recognize trends or spot disproportionate categories since the figures make it difficult to tell how much a category has changed in relation to the other categories. Common-size statements solve this problem by valuing all categories in relation to a base
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Common Size Statements are used to compare financial statements of different-size companies‚ or of the same company over different periods. Common-size analysis - (also called vertical analysis) expresses each line item on a single year’s financial statement as a percent. The base amount for the balance sheet is usually total assets (which is the same number as total liabilities plus stockholders’ equity)‚ and for the income statement it is usually net sales or revenues. By comparing two or more
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COMPARATIVE STATEMENT COMMON SIZE STATEMENT AND TREND ANALYSIS INTRODUCTION We know business is mainly concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements‚ known as financial statements. Financial statements are mainly prepared for decision making purpose. But the information as is provided in the financial statements is not adequately helpful in drawing a meaningful conclusion. Thus‚ an effective analysis
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McDonald & Wendys financial Statement Comparation Financial Statement Analysis Project The two companies that I will be comparing in this project are McDonalds and Wendys. Both of these companies are competitors in the same industry. I am using the information from their 2005 Financial Statements. Debt-to-Assets Ratio When comparing the debt-to-assets ratio of McDonalds and Wendys‚ you have to divide the firms total liabilities by their total assets. Essentially‚ the debt-to-assets
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Common-size Income Statement Analysis The common-size income statement shows that Coca-Cola’s cost of goods sold to revenues percentage rose very slightly from 39.14% in 2011 to 39.32% in 2013. At the same time‚ PepsiCo’s cost of goods sold to revenues percentage decreased from 47.51% in 2011 to 47.04% in 2013‚ bringing the 3-year-average to 47.44%. However‚ 47.44% is still much higher than Coca-Cola’s 3-year-average of 39.38%. With lower cost of goods sold to revenues ratio‚ Coca-Cola was able to
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Introduction For this paper‚ I was asked to select a publicly traded company and find their financial statements. The company that I chose was McDonald’s. Once I chose McDonald’s I found their income statement and balance sheets for the years ending December 31‚ 2010 and 2009. From these financial statements‚ I then computed the liquidity‚ asset management and profitability ratios. I then compared McDonald’s to the industry ratios to see how they compared to their competition. Finally I will
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Mc Donald’s Products and Services. McDonalds is the world’s leading food service retailer with more than 30‚000 restaurants in 118 countries serving 46 million customers each day. McDonalds is one of the world’s most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which they do business. Serves the world some of its favorite foods - World Famous French Fries‚ Big Mac
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------------------------------------------------- CASE ANALYSIS REX V MCDONALD AND MCDONALD St Qd [1904] 151 ------------------------------------------------- INTRODUCTION In order for criminal liability to be placed‚ an accused must not only commit a specific act but also a breach of a duty concerned1. This concept was brought to the forefront in the case of R v McDonald and McDonald St R Qd [1904] 151. The Supreme Court of QLD2 was called to consider the case of Angus and Flora McDonald‚ appealing against joint charges of
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Opportunity 13 Porter 5 Forces 14 Competitors 14 Threat of Substitute 15 Power of Supplier 15 Power of Buyer 15 Alternatives 16 Alternatives analyzed 16 Recommendation 17 Implementation 18 Conclusion 18 References 19 Introduction McDonald ’s Corporation is the world ’s largest chain of fast food restaurants‚ serving nearly 47 million customers daily through more than 31‚000 restaurants in 119 countries worldwide. McDonald’s sells various fast food items and soft drinks including‚
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