Chapter 16

Financial Statement Analysis

ESSENTIAL QUESTIONS

How are component percentages calculated? What is meant by trend analysis? What is the difference between trend analysis and component percentage analysis? What calculations are performed when evaluating earnings performance and efficiency analysis? What calculations are performed when doing a short-term analysis? What calculations are performed when doing a long-term analysis?

TERMS FOR CHAPTER 16

-ratio -trend analysis -rate earned on net sales -working capital -current ratio

-quick assets -acid-test ratio -debt ratio -equity ratio

ASSIGNMENTS

Define Terms for the Chapter Trend Analysis and Component Percentages Read pp. 444-451 1) View Power Point presentation intro and 16-1 2) Complete Application Problem 16-1 & 16-2 pp. 467-468 3) Work on Study Guide 16 Time 2 days Calculating Earnings Performance and Efficiency Analysis Read pp. 452-460 1) View Power Point presentation 16-2 2) Create a reference or study sheet for the various ratios and analyses introduced in this section 3) Complete Application Problem 16-3 & 16-4 p. 468 4) Continue to Work on Study Guide 16 Time 2 days Calculating Financial Strength Analysis Read pp. 461-466 1) View Power Point presentation 16-3 2) Create a reference or study sheet for the various ratios and analyses introduced in this section. 3) Complete Application Problem 16-5 & 16-6 pp. 468-469 4) Complete Study Guide 16 Time 2 days

Complete Mastery Problem 16-7 pp. 469-470 Time 2 days Additional Chapter exercises Chapter Sixteen Internet Activity Cases for Critical Thinking, Case Two p. 472 International Mail p. 457 (This should be at least one typed page.) Time 3 days Challenge Problem 16-8 pp. 470-472 may be completed for extra credit All Chapter 16 assignments must be handed in by April 2nd. No Exceptions.