【導讀】1. Chapter19. Financialstatement. analysis. DrAnneAbraham. ©2020JohnWiley&SonsAustralia,Ltd. ANALYSIS. –Liquidity. –Profitability. –Gearing. Intra-entitybasis. Industryaverages. relativetoothers). Inter-entitybasis. LO1. Toolsof. Horizontalanalysis. Verticalanalysis. Ratioanalysis. HORIZONTALANALYSIS. overaperiodoftime. orpercentages. LO2. Currentresultsin=Currentyearamount. Changesince=Currentyearamount–Baseyearamount. Trendanalysis. paresasingle. observationover. severalyears.Wecanusethe. trendanalysisto. constructgraphsso. wecanseetrends. overtime.TrendAnalysis. VERTICALANALYSIS. LO3. DodsonIndustries,Inc.Common-Size. Percentages. 2020202020202020. Netsales520,000$480,000$100.0100.0. Costofgoodssold360,000315,000. Grossmargin160,000165,000. Interestexpense6,4007,000. Lessincometaxes(30%)7,5009,600. Netincome17,500$22,400$. CommonSize

　　

【正文】 ting policy has occurred … – The new policy should be used in reporting results of operations for the current year – The cumulative effect of the change on all prior year ine statements should be disclosed of tax in a special section immediately preceding profit PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 38 Change in accounting estimates ? Changes in accounting estimates are recognised retrospectively and included in the ine statement in the period in which the change occurs ? Entities must disclose the nature and amount of accounting estimate change PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 39 Comprehensive ine ? Includes all changes in shareholders’ equity during a period except those resulting from –Investments by shareholders –Distributions to shareholders PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 40 LIMITATIONS OF FINANCIAL STATEMENT ANALYSIS 1. Estimates ? Financial statements contain many estimates ., allowance for doubtful debts depreciation expense costs of warranties ? If estimates are inaccurate, the financial ratios and percentages will also be inaccurate PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 41 LO6 Limitations continued 2. Cost ? Many items are carried at historic cost ? This does not account for pricelevel changes 3. Alternative accounting methods ? Differences in accounting policies for the similar financial activities are often allowed – ., methods of depreciation PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 42 Limitations continued 4. Atypical data ? Some endofperiod data may not represent normal business conditions 5. Diversification of entities ? Diversification within entities limits usefulness of financial statement analysis ? Segment data may provide more relevant and parable information PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 43 Reading Assignment Chapter 19 ? A prehensive reading of the whole chapter is required, together with the Bikes R US Ltd as an Illustration ? Make sure you can memorize all ratio formulae Chapter 19: ? Mastering the Summary of ratios on P. 783784 Formulae will not be given in examination ? Go through Demonstration Problem 1 and 2 on P. 791 794 ? Questions 1, 11, 14, 21, 24 ? , , , , ? , , ? , , ? , Suggested questions to ensure your lecture understanding Ine Available to Ordinary Shareholders Net Ine ? Prefer. Share Dividends = Matrix, Inc. reports ine of $128,387. Matrix has 1,000 shares of $100 par value, 8%, cumulative preferred stock outstanding. D a t e D e s c r i p t i o nS h a r e s O u t s t a n d i n g1 / 1 B a l a n c e 1 0 0 , 0 0 0 4 / 1 I s s u e d 2 5 , 0 0 0 9 / 1 P u r c h a s e ( 3 , 0 0 0 ) 1 0 / 1 I s s u e d 1 0 , 0 0 0 Earnings Per Shares (EPS) D a t e D e s c r i pt i onS ha r e s O ut s t a nd i ngM on t hs O ut s t a nd i ngW e i gh t e d S ha r e s1 / 1 B a l a nc e 1 0 0 , 0 0 0 1 2 / 1 2 1 0 0 , 0 0 0 4 / 1 I s s ue d 2 5 , 0 0 0 9 / 1 2 1 8 , 7 5 0 9 / 1 Tr e a s ur y ( 3 , 0 0 0 ) 4 / 1 2 ( 1 , 0 0 0 ) 1 0 / 1 I s s ue d 1 0 , 0 0 0 3 / 1 2 2 , 5 0 0 W e i gh t e d a v e r a ge s ha r e s ou t s t a nd i ng 1 2 0 , 2 5 0 P r e f e r r e d s ha r e s 1 , 0 0 0 P a r v a l ue pe r s ha r e 100$ Tot a l pa r v a l ue 1 0 0 , 0 0 0$ D i v i de nd r a t e 8%P r e f e r r e d di v i de nd 8 , 0 0 0$ Basic EPS = $ (rounded) = $128,387 ? $8,000 120,250 Weighted Average Share