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Lesson 17-1 Trend Analysis and Component Percentages

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Presentation on theme: "Lesson 17-1 Trend Analysis and Component Percentages"— Presentation transcript:

1 Lesson 17-1 Trend Analysis and Component Percentages
5/24/2019 LESSON 17-1 Trend Analysis and Component Percentages RED

2 RATIO ANALYSIS Net Income Net Sales Stated Ratio ÷ = $2,000,000.00 ÷ =
Lesson 17-1 5/24/2019 RATIO ANALYSIS page 495 Net Income Net Sales Stated Ratio ÷ = $2,000,000.00 ÷ = 10 times (10 to 1 or 10:1) $200,000.00 The stated ratio means net sales is 10 times net income. Net Sales Net Income Percentage Ratio ÷ = $200,000.00 ÷ = .10 or 10% $2,000,000.00 Net income is 10% of sales. Net Sales Net Income Fractional Ratio ÷ = $200,000.00 ÷ = 1/10 $2,000,000.00 Net income is one-tenth of net sales. LESSON 17-1 RED

3 TREND ANALYSIS ON THE INCOME STATEMENT
Lesson 17-1 5/24/2019 TREND ANALYSIS ON THE INCOME STATEMENT page 496 1 2 3 4 Current Year Net Sales $4,767,200.00 1 – Prior Year Net Sales 3,633,000.00 2 = Increase or Decrease in Net Sales $1,134,200.00 3 ÷ Prior Year Net Sales 3,633,000.00 = % Increase or Decrease in Net Sales 31.2% 4 LESSON 17-1 RED

4 TREND ANALYSIS ON THE STATEMENT OF STOCKHOLDERS’ EQUITY
Lesson 17-1 5/24/2019 TREND ANALYSIS ON THE STATEMENT OF STOCKHOLDERS’ EQUITY page 497 LESSON 17-1 RED

5 TREND ANALYSIS ON THE BALANCE SHEET
Lesson 17-1 5/24/2019 TREND ANALYSIS ON THE BALANCE SHEET page 498 LESSON 17-1 RED

6 TREND ANALYSIS ON THE BALANCE SHEET
Lesson 17-1 5/24/2019 TREND ANALYSIS ON THE BALANCE SHEET page 498 LESSON 17-1 RED

7 COMPONENT PERCENTAGES ON THE INCOME STATEMENT
Lesson 17-1 5/24/2019 COMPONENT PERCENTAGES ON THE INCOME STATEMENT page 499 LESSON 17-1 RED

8 COMPONENT PERCENTAGES ON THE INCOME STATEMENT
Lesson 17-1 5/24/2019 COMPONENT PERCENTAGES ON THE INCOME STATEMENT page 499 LESSON 17-1 RED

9 COMPONENT PERCENTAGES ON THE STATEMENT OF STOCKHOLDERS’ EQUITY
Lesson 17-1 5/24/2019 COMPONENT PERCENTAGES ON THE STATEMENT OF STOCKHOLDERS’ EQUITY page 500 LESSON 17-1 RED

10 COMPONENT PERCENTAGES ON THE BALANCE SHEET
Lesson 17-1 5/24/2019 COMPONENT PERCENTAGES ON THE BALANCE SHEET page 501 LESSON 17-1 RED

11 COMPONENT PERCENTAGES ON THE BALANCE SHEET
Lesson 17-1 5/24/2019 COMPONENT PERCENTAGES ON THE BALANCE SHEET page 501 LESSON 17-1 RED


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