The calculations you perform for this CheckPoint form the basis of your analysis of your capstone project.
Writein 100 to 200 words an explanation of the three tools of financial statement analysis and the function of each.
ExaminePepsiCo, Inc. s Consolidated Balance Sheet on p. A6 in Appendix A of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2005 and 2004.
Calculatethe following for PepsiCo, Inc. and show your work:
The Current Ratio for 2005
The Current Ratio for 2004
Two measures of vertical analysis for example, compute the current assets divided by total assets for each year, and express your result as a percentage
Two measures of horizontal analysis for example, compute the total change in assets by percentage, by dividing current assets in 2005 by current assets in 2004. Compute a similar percentage for current liabilities
ExamineTheCoca-Cola Company s Consolidated Balance sheet on p. B2 in Appendix B of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2005 and 2004.
Calculatethe following for Coca-Cola and show your work:
The Current Ratio for 2005
The Current Ratio for 2004
Two measures of vertical analysis for example, compute the current assets divided by total assets for each year, and express your result as a percentage
Two measures of horizontal analysis for example, compute the total change in assets by percentage, by dividing current assets in 2005 by current assets in 2004. Compute a similar percentage for current liabilities
Postyour explanation and calculations.