### XACC 280 CheckPoint: Ratio, Vertical, and Horizontal Analyses

19.9 billion brain cells

**_CheckPoint: Ratio, Vertical, and Horizontal Analyses_**__ The calculations you perform for this CheckPoint form the basis of your analysis of your capstone project. • Write in 100 to 200 words an explanation of the three tools of financial statement analysis and the function of each. • Examine PepsiCo, 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. • Calculate the following for PepsiCo, Inc. and show your work: o The Current Ratio for 2005 o The Current Ratio for 2004 o 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 o 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 • Examine The Coca-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. • Calculate the following for Coca-Cola and show your work: o The Current Ratio for 2005 o The Current Ratio for 2004 o 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 o 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 • Post your explanation and calculations.

20.4 billion brain cells

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Excerpt from file: 1. CheckPoint: Ratio, Vertical and Horizontal Analysis The calculations you perform for this CheckPoint form the basis of your analysis of your

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Surround your text in *italics* or **bold**, to write a math equation use, for example, $x^2+2x+1=0$ or $$\beta^2-1=0$$