analyzing investing activities

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    Analyzing Investing Activities

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    The Balance Sheet

    Copyright 2010 PearsonEducation, Inc. Publishing as

    2-2

    ld accountants ne!er die"they #ust lose their balance$

    --%nony&ous

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    Current (Short-term) Assets

    Current (Short-term) Assets

    Noncurrent(Long-term)

    Assets

    Noncurrent(Long-term)

    Assets

    Resources or claimsto resources that are

    expected to be sold,collected, or usedwithin one year or

    the operating cycle,whicheer is longer!

    Resources or claimsto resources that are

    expected to be sold,collected, or usedwithinone year or

    the operating cycle,whicheer is longer!

    Resources or claimsto resources that

    are expected toyield bene"ts thatextend beyond one

    year or theoperating cycle,

    whicheer is longer!

    Resources or claimsto resources that

    are expected toyield bene"ts thatextend beyondone

    year or theoperating cycle,

    whicheer is longer!

    Classi"cation

    Assets

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    2-'

    Common-Size Balance Sheet

    E(presses each ite& on the balance sheetas a percentage o) total assets

    *e!eals the co&position o) assets

    +or& o) !ertical ratio analysis that allosco&parison o) r&s

    se)ul )or e!aluating trends ithin a r&and to &a/e industry co&parisons

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    *CE 3 000 Co&&on 4i5e 2010 2007 2010 2007

    Property, plant and e8uip&ent9,0:;,0

    212,:'2,2

    22 91.92< 2;.='07,911 1,;7>,7;1 1>.='< 20.9: