analyzing investing activities
TRANSCRIPT
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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
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