Financial Statement Analysis Report: Trend Analysis
The purpose of this assignment is to prepare a vertical and horizontal common-size analysis.
Financial statement analysis requires the analyst to utilize calculation tools, such as horizontal, vertical, and ratio analysis. Interpretation of the ratio analysis allows the analyzer to observe changes in revenue over time.
For your assignment, locate and review the last 3 years of the annual report of Coca-Cola. This document is located on the company’s website under Investor Relations. Prepare a vertical and horizontal analysis in the Balance Sheet and Income Statement tabs of the “Financial Statement Report Excel Spreadsheet” (FSAR Excel Spreadsheet) provided.
The spreadsheet will serve as a guideline for completing the assignment, the actual sections or order of reporting from the company’s annual report may vary. Complete only the applicable sections based on the information provided in the company’s annual report.
1. Complete the horizontal analysis column of the prior 3
2. Complete the vertical analysis column for the prior 3
Address in the following questions in the comments section of both the Balance Sheet and Income Statement tabs:
1. What accounts changed for the period and how did this affect the financial analysis calculation?
2. Why did the account change during the period? Explain what business decisions may have caused the change.
3. How does this change influence the company’s performance?
You will submit the FSAR Excel Spreadsheet with the analyzed data for the selected company. To earn full credit on this assignment, you must show detailed work in Excel, which includes providing the formulas and comments in the cells, not just the summary value.
APA style is not required, but solid academic writing is expected.
