Vertical Analysis Exercise

250 Words1 Page
bulb-icon

Recommended: Analyzing financial statements

After completing this exercise and reviewing the accounts such as Mortgage Payment, Insurance, and Income taxes, I now see that those accounts are the control ones in as which the accounts that I need to monitor is the variable expenses such as utilities, food and vacations. This exercise is where I had to perform a vertical analysis. A vertical analysis is a system operation where a single variable of a financial statement is constant and how the other variables relate as a percentage of the single variable. In the vertical analysis the formula that’s used is percentage of base = the amount of individual item/amount of base x 100. By using this technique, I came up with the accounts that are controlled are Mortgage Payment, Insurance, and

Show More
Related

  • Be Our Guest Case Analysis

    2114 Words  | 5 Pages

    In Be Our Guest, Inc.’s scenario, we can see that the total cash flow from operations increased from 1995, $168,000, to 1997, $229,000, by 37%. This increase to the CFO is a result of a few different accounts. Although net income decreased 22.8% from 1995 to 1997, because depreciation increased 25.8% from 1995 to 1997, the total net income adjusted for non-cash charges increased by 4% from $250,000 to $259,000, from 1995 to 1997. The changes to Accounts Receivable over the years reduce cash flow from operations by $75,000, $46, $42,633 in 1995, 1996, and 1997, respectively. These increases in accounts receivable cause the cash flow from operations to decrease because Be Our Guest, Inc. collected less money from their customers compared to the sales. Whereas, the changes in Accounts payable & accruals of, $5,768, $19,063, and $14,859, in 1995, 1996, and 1997, respectively, caused the cash flow from operations to increase because Be Our Guest, Inc. is paying their suppliers less, indicating they are retaining more cash for

    Read More

  • Analysis of a Relationship

    1299 Words  | 3 Pages

    Fairy tales tell us that once upon a time a girl met a boy; they fell in love, and lived happily ever after. Reality is not that simple. Long-term relationships force couples to get to know each other, involve themselves in each others’ worlds, fight through the hard times, and eventually develop deeper connections as noted through distinctive stages of Knapp’s relationship model. Although I have dated the same person for over two years, our communication through relationship stages makes it seem as though I am now dating a different person than the one I met years ago. Following dissolution and subsequent repair, I realize the most exhilarating of roller coaster rides develop through sets of ups and downs, much like the stages on how our relationship is built.

    Read More

  • At A Window Analysis

    1007 Words  | 3 Pages

    Loneliness is an emotion many people express in art in order to feel better. These works of art are often songs and poems. The song "Eleanor Rigby" by The Beatles and the poem "At a Window" by Carl Sandburg explore loneliness and how it affects those who experience it. Poetry and song have both been used to express emotion for decades. The two art forms are so comparable that practitioners of either try to convert those on the "other side" to express their art in the other way. As Adam Kirsch says, "... to the poet, turning a rapper into a poet is a cultural promotion; to the rapper, it looks more like a forfeiture of authenticity" (1). Both poets and song artists believe their form of expression is suitable, but in specific cases, song

    Read More

  • Analysis Of An Obstacle

    321 Words  | 1 Pages

    Charlotte Perkins Gilman wrote the poem “An Obstacle” as an autobiographical about her struggles and tough times and facing the obstacles . Gilman lived in Hartford, Connecticut. She was known for her short stories but mostly know for her semi-autobiographical “The Yellow Wallpaper” but she wrote serval different poetry collection and was surely a remarkable female writer of her time and was a role model for authors and readers all over the world. The next year she discovered she had inoperable breast cancer and then committed suicide on August 17, 1935 with overdose of chloroform because she couldn’t handle the stress and struggles in her life anymore. These struggles are revealed in her poem and its heartbreaking quotes like “He got mad

    Read More

  • P1 Unit 5 Analysis

    368 Words  | 1 Pages

    Unit 5 deals with emotions and motivations, emotions are the intangible characteristics of our personality that identify all stages of our behavior. From happiness to sadness, from anger to fear and many more we express our feelings according to any situation we are in at a given time.

    Read More

  • Deprecation At Delta Airlines And Singapore Air Lines

    1506 Words  | 4 Pages

    The amount each company should recognize as expense is given in a given year depends on the following factors

    Read More

  • Vertical Intergration

    923 Words  | 2 Pages

    According to a North American dictionary entry vertical integration is defined as “merging of companies in supply chain: the merging of companies that are in the chain of companies handling a single item from raw material production to retail sale” (“Vertical Integration,” 2009). Though the definition of vertical integration is quite simple the concept is much more complicated than one may think. There are four strategic factors that must be established by business leaders before the implementation of vertical integration can take place that must be well-thought-out in order to achieve any level of success. The factors that influence vertical integration are economic, market, operational, and strategic.

    Read More

  • Internal Audit Case Study

    1665 Words  | 4 Pages

    To counter this problem, computer assisted audit techniques have been developed. These systems are able to provide a more in depth analysis of the utilized billing systems. Computer assisted audit techniques also enable highly efficient assessment of transactions. By utilizing this system, an auditor could gain a clearer picture of the revenue reporting mechanisms that are being utilized by the business office. Once the information is derived, however, its interpretation, while simpler, will still require an individual that is knowledgeable in regard to the revenue cycle

    Read More

  • Assignment 1: Student Analysis

    571 Words  | 2 Pages

    Criteria #2: Extracurricular involvement, as demonstrated by leadership and distinguished participation in an active student organization. Describe how you meet this criterion.

    Read More

  • Financial vs. Managerial Accounting

    1091 Words  | 3 Pages

    Albrecht, W. S., Stice, J. D., Stice, E. K., & Skousen, k. F. (2002). Accounting Concepts and Applications. Cincinnati: South-Western.

    Read More

  • Cost Accounting Case Study

    2272 Words  | 5 Pages

    The overall purpose of cost accounting is to advise top administration and the management team on the most suitable and cost effective methods and actions to employ based on cost, capability and efficiencies of a given product or service. It can be defined as the method where all the expenditures used during execution of business activities are gathered, categorized, examined and noted down (Horngren & Srikant, 2000). Once these numbers are gathered and recorded the information is used to determine a selling price and/or to identify possible investment opportunities. Although the principal aim or function of cost accounting is to help the business administration with their decision making and business planning process, the cost accounting data

    Read More

  • Standing Tall Analysis

    928 Words  | 2 Pages

    Standing Tall, written by Sam Carchidi, is a story of triumph and overcoming odds that

    Read More

  • Essay On Challenges Of Accounting

    1025 Words  | 3 Pages

    Accounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.

    Read More

  • Responsibility Accounting

    1110 Words  | 3 Pages

    Responsibility accounting is the practice that focuses on providing financial information useful in evaluating efficiency and effectiveness of managers or department heads, on the basis of financial performance directly under their control. Responsibility accounting is also based on the assumption that every cost incurred must be the responsibility of one person somewhere in the company. Examples could include; the cost of rent being assigned to the person who negotiates and signs the rental agreements; or the cost of an employee’s salary being the responsibility of that person’s direct manager, or human resources manager (S. Bragg, 2010).

    Read More

  • Analysis of a Business Problem

    1356 Words  | 3 Pages

    The purpose of this paper is to briefly analyze why burrs and rough spots suddenly started to appear on quarter panel parts at an automotive company. Three out of four production lines at an automotive plant facility experienced defects of manufactured panel parts. Also, an analysis of how the panel problem is related to organizational sub-culture, organizational politics and job stress. Although there are several implications of various issues related to organizational culture, organizational politics and job stress is important because it determines how human capital within an organization will demonstrate the capacity to cope with working for the organization, thus determining the success of the organization. “To illustrate, studies have shown that job stress results from the interaction of the worker and the conditions of the workplace, i.e., the culture (Vigoda, 2002).” “Likewise, there are studies conducted that found organizational politics to have an adverse effect on psychological issues such as job stress (Ferris, Russ, & Fandt,1989).” Therefore, an organizations most valued asset is its employees.

    Read More

More about Vertical Analysis Exercise

Open Document