【正文】 m e 1 , 0 1 5 , 0 0 0$ This tax expense does not include effects of unusual, nonrecurring items. ?The McGrawHill Companies, Inc., 1999 Slide 125 Irwin/McGrawHill R o s s C o r p o r a t i o nI n c o m e S t a t e m e n tF o r t h e Y e a r E n d e d D e c e m b e r 3 1 , 2 0 0 1N e t S a l e s 8 , 0 0 0 , 0 0 0$ C o s t o f g o o d s s o l d 4 , 5 0 0 , 0 0 0 G r o s s m a r g i n 3 , 5 0 0 , 0 0 0$ O p e r a t i n g e x p e n s e s : S e l l i n g e x p e n s e s 1 , 5 0 0 , 0 0 0$ G e n e r a l amp。 A d m i n . e x p . 9 2 0 , 0 0 0 L o s s o n s e t t l e m e n t o f l a w s u i t 8 0 , 0 0 0 I n c o m e t a x e s 3 0 0 , 0 0 0 2 , 8 0 0 , 0 0 0 I n c o m e f r o m C o n t i n u i n g O p e r a t i o n s 7 0 0 , 0 0 0$ D i s c o n t i n u e d O p e r a t i o n s 2 4 5 , 0 0 0 E x t r a o r d i n a r y I t e m s ( 7 0 , 0 0 0 ) C u m u l a t i v e e f f e c t o f a c h a n g e i n a c c o u n t i n g p r i n c i p l e 1 4 0 , 0 0 0 N e t i n c o m e 1 , 0 1 5 , 0 0 0$ ?The McGrawHill Companies, Inc., 1999 Slide 124 Irwin/McGrawHill R o s s C o r p o r a t i o nI n c o m e S t a t e m e n tF o r t h e Y e a r E n d e d D e c e m b e r 3 1 , 2 0 0 1N e t S a l e s 8 , 0 0 0 , 0 0 0$ C o s t o f g o o d s s o l d 4 , 5 0 0 , 0 0 0 G r o s s m a r g i n 3 , 5 0 0 , 0 0 0$ O p e r a t i n g e x p e n s e s : S e l l i n g e x p e n s e s 1 , 5 0 0 , 0 0 0$ G e n e r a l amp。e q u i t y .T h e r e a r e 3 o p t i o n sf o r r e p o r t i n gC o m p r e h e n s i v e I n c o m eG A A P r e q u i r e s t h a t u n r e a l i ze d i t e m s t h a t a r en o r m a l l y r e p o r t e d o n t h e b a l a n c e s h e e t b ea d d e d b a c k t o c o m p u t e C o m p r e h e n s i v e I n c o m e .?The McGrawHill Companies, Inc., 1999 Slide 1242 Irwin/McGrawHill Hang in there! We are ing down the home stretch! Yeah, that is easy for you to say! ?The McGrawHill Companies, Inc., 1999 Slide 1243 Irwin/McGrawHill Chapter 14 Financial Statement Analysis ?The McGrawHill Companies, Inc., 1999 Slide 1244 Irwin/McGrawHill Purpose of Analysis Internal Users External Users Financial statement analysis helps users make better decisions. Managers Officers Internal Auditors Shareholders Lenders Customers ?The McGrawHill Companies, Inc., 1999 Slide 1245 Irwin/McGrawHill Purpose of Analysis G ro w t hi n s a l e sR e t u r n t os t o c k h o l d e r sP r o f i tm a r g i n sR e t u r n o ne q u i t yD e t e r m i n e d b ya na l y zi ng t hef i na nc i a ls t a t e m e nt s .F i n a n c i a l m e a s u r e s a r e o f t e n u s e dt o r a n k c o r p o r a t e p e r f o r m a n c e .E x a m p l e m e a s u r e s i n c l u d e :?The McGrawHill Companies, Inc., 1999 Slide 1246 Irwin/McGrawHill Financial Statements are Designed for Analysis R e s u l t si n s t a n d a r d i ze d ,m e a n i n g f u ls u b t o t a l s .I t e m s w i t h c e r t a i nc ha r a c t e r i s t i c s a r egrou pe d t og e t he r .C l a s s i f i e dF i n a n c i a lS t a t e m e n t sH e l ps i de nt i f ys i gni f i c a ntc ha nge s a ndt r e nds .A m oun t s f r oms e v e r a l y e a r sa ppe a r s i de by s i de .C o m p a r a t i v eF i n a n c i a lS t a t e m e n t sP r e s e nt e d a s i ft he t w o c om pa ni e sa r e a s i ngl ebus i ne s s uni t .I nf or m a t i on f or t hepa r e nt a nd s ub s i di a r ya r e pr e s e nt e d.C o n s o l i d a t e dF i n a n c i a lS t a t e m e n t s?The McGrawHill Companies, Inc., 1999 Slide 1247 Irwin/McGrawHill Tools of Analysis Liquidity and Efficiency Solvency Profitability Market Ability to meet shortterm obligations and to efficiently generate revenues Ability to generate future revenues and meet longterm obligations Ability to generate positive market expectations Ability to provide financial rewards sufficient to attract and retain financing ?The McGrawHill Companies, Inc., 1999 Slide 1248 Irwin/McGrawHill Dollar Change: Analysis Period Amount Base Period Amount Dollar Change = Dollar and Percentage Changes Percentage Change: Dollar Change Base Period Amount Percent Change = % ?The McGrawHill Companies, Inc., 1999 Slide 1249 Irwin/McGrawHill Dollar and Percentage Changes S a l e s a n d e a r n i n g ss h o u l d i n c r e a s e a tm o r e t h a t t h e r a t eo f i n f l a t i o n .I n m e a s uri ng qu a r t e r l yc ha ng e s , c om pa r e t ot he s a m e qu a r t e r i nt he pre v i ou s y e a r .P e r c e nt a ge s m a y bem i s l e a di ng w he n t heba s e a m ou nt i s s m a l l .E v a l u a t i n g P e r c e n t a g e C h a n g e si n S a l e s a n d E a r n i n g s?The McGrawHill Companies, Inc., 1999 Slide 1250 Irwin/McGrawHill Let s look at the asset section of Clover Corporation s parative balance sheet and ine statement for 2020 and 2020. Compute the dollar change and the percentage for cash. Dollar and Percentage Changes Example ?The McGrawHill Companies, Inc., 1999 Slide 1251 Irwin/McGrawHill C L O V E R C O R P O R A T I O NC o m p a r a ti v e B a l a n c e S h e e tsD e c e m b e r 3 1 , 2020 2020D o l l a r C h a n g eP e r c e n t C h a n g e *A s s e tsC u r r e n t a s s e ts : C a s h a n d e q u i v a l e n ts 1 2 , 0 0 0$ 2 3 , 5 0 0$ A c c o u n ts r e c e i v a b l e , n e t 6 0 ,