Balance Sheet and Income Statement Analysis

BALANCE SHEET AND INCOME STATEMENT-Identify the different financial statements (BS*, IS, Statement of Stockholders’ Equity, and related notes) -Identify the different components of the BS (Assets: current and long term; Liabilities: current and long term; stockholders’ equity: preferred stock, common stock, PIC, treasury stock) -Identify the different component of the IS (Gross profit, earnings before interest and taxes, interest expense, income tax expense, income from continuing operations, discontinued activities, extraordinary items) -Identify within the IS, BS and Stockholders equity statement: comprehensive income,OCI and accumulated OCIPPE-Identify the different components of PPE (property, plant, equipment) and related accumulation depreciation. Locate the depreciation methods and estimates used for the calculations. -Identify valuation basis (market value or historical costs) and describe the impairment testing procedure for PPE. -Identify the amount of depreci ation expense in the IS (or the notes) Compute profitability ratios and provide a short analysis (see exercise 10-26B).INTANGIBLES-Identify the different components of Intangible assets (marketing, customer, contractual, technological, goodwill) and related accumulation amortization (if available). Locate the amortization methods and estimates used for the calculations. -Identify if they have definite or indefinite life– Describe the impairment testing procedure for PPE. -Identify the amount of amortization expense in the IS (or the notes)LIABILITIES– Identify current liabilities (including contingencies) in the BS – Identify the LT liabilities (nature and the total amount) in the BS – Identify the amount of interest expense in the IS – What type contingencies are disclosed, their probability of occurrence and their range of estimate. – Determine the number of LT debts (loans, bonds etc†¦), related maturity date and rate of interest (co upon for bonds) and amount. – Compute solvency and liquidity ratios and provide a short analysis.STOCKOLDERS’ EQUITY– Identify the types of shares, the number of shares authorized, issued and outstanding (if any, treasury stock) and PIC. For PS, identify the stated rate, covenants/characteristics. – Locate Dividends in the BS and SE (2schedules) and IS.– Identify which types of dividends have been issued (Cash? Stock, Split? Other?) – Identify Accumulated OCI in 2 schedules (BS and statement of stockholders Equity). – Explain briefly the different of Stockholders Equity Statement – Apply ratios related to chapter 13 (end of ppt presentation) and provide a short analysis.CHAPTER 14 – INVESTMENTS– Identify the different investments in the BS and related notes (Debt and Equity), then by classification (Held to Maturity, Trading or Available for sale) – Identify in SE section of the BS the accumulated OCI, then locate in Stockholders Equity Statement, the different movement of OCI (BB +/- changes). – Identify in the IS the OCI component (if any) and comprehensive income. – Check for investment between 20-50% that use the equity method (see notes) – Check for impairment testing for investmentsCHAPTER 17 – LEASING– Identify the capital lease assets and liabilities in the BS and related interest expense plus depreciation expense in the IS. – Identify if there is any operating lease. – What is the nature of every lease (sales-type or direct-financing) and related financial conditions. – Identify the lease payments for the next 5 years and the different categories of leased assets.*BS = Balance Sheet IS = Income Statement SE = Stockholder’s Equity statement (or statement of changes in equity)