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Assignment Intermediate Accounting

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Added on  2020-05-16

Assignment Intermediate Accounting

   Added on 2020-05-16

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Running head: INTERMEDIATE ACCOUNTINGIntermediate accountingName of the studentName of the universityAuthor note
Assignment Intermediate Accounting_1
1INTERMEDIATE ACCOUNTINGTable of ContentsHorizontal and vertical analysis.................................................................................................2Ratio analysis.............................................................................................................................2Reference....................................................................................................................................4
Assignment Intermediate Accounting_2
2INTERMEDIATE ACCOUNTINGAnalysis of the performance of Corus EntertainmentHorizontal and vertical analysisCommon size analysis or the vertical and horizontal analysis of the company is usedto analyse each item of income statement and balance sheet to assess the trend of thecompany. Looking into the horizontal analysis of the company it is identified that the revenueof the company has been increased by 43% in 2017 as compared to 2016. However, theexpenses of the company have been increased by 39% as compared to previous year. Further,as the increase of revenue is more than the increase of expenses, the net income of thecompany is increased by 56%. Moreover the assets of the company have been merelyreduced by 0.42% over the years from 2016 to 2017. The total liabilities have been reduce by4.11% and total shareholder’s equity of the company is increased by 4.97%On the other hand, looking into the vertical analysis of the company it is identifiedthat the operating income of the company for the year 2017 is 18% of the revenue whereasfor 2016 the same was 16% of the revenue. Further, the net income for 2017 is 13% asagainst 12% for 2016. Out of the total assets of the company 8.7% is current assets and91.3% is non-current assets. Further, among the total liabilities and equity, 57% is debtcomponent and 43% is equity component.Ratio analysis Profitability ratio – looking into the profitability ratio of the company it is identified that thegross profit ratio and return on equity of the company is reduced in 2017 as compared to2016. The gross profit has been reduced from 94% to 34% over the years and the return onequity has been reduced from 8% to 4%. However, the operating margin has been increased
Assignment Intermediate Accounting_3

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