會(huì)計(jì)英語(yǔ)Unit9省公開(kāi)課金獎(jiǎng)全國(guó)賽課一等獎(jiǎng)微課獲獎(jiǎng)?wù)n件

Unit9StatementAnalysis1/13LearningObjectivesThemainpurposeofthisunitistointroducethemethodsofanalysingthestatements.Afterlearningthisunit,youshouldbeableto:1. Identifythethreeformsofratioanalysismethods.2. Describethemainratios.3. Outlinethefourratiosassociatedwithfinancialstructure.4. Explainthefiveratiosassociatedwithprofitability.5. Describethecharacteristicsofhorizontalanalysis.6. Outlinethecharacteristicsofverticalanalysis.7. Masterthemainaccountingtermsrelatedtothestatementanalysis.2/13LeadInHereisasimplefinancialstatementofABCCompany.Readitanddiscussthefollowingquestionswithyourpartner:

itemsbalanceCashandcashequivalents600,000Accountsreceivable5,000,000Inventory7,500,000Buildingsandequipments15,000,000Totalassets28,100,000Currentliabilities3,400,000Long-termliabilities2,000,000Paid-incapital15,000,000Retainedearnings7,700,000Totalliabilitiesandowner’sequity28,100,0003/13Questions:1. Whatinformationcanyougetfromthisstatement?Doyouthinkthecompanyoperatewellornot?Giveyourreasons.Therearemanykindsofmethodsforanalyzingfinancialstatements.Amongthem,Ratioanalysisisthemostusefulandimportantmethod.Itincludesfinancialstructureratios,profitabilityratiosandassetmanagementmeasures.9.1FinancialStructureRatioAnalysis

Financialstructureratiosarebasedonthebalancesheet.Theyareusedtoanalyzethecompany’sliquidityandleverage.Accordingly,therearetwotypesofratios:theliquidityratiosandthe4/13leverageratios.Currentratioandquickratioaretwowidelyusedratiostoassesstheliquidityofacompany.Andtheleverageratiosincludedebtratioandequitymultiplier.Theyareusedtoexaminetheaccountingentity’sfinancialleverage.Theformulationtocalculatethefourratiosareasbelow：1.Currentratio=Currentassets/Currentliabilities2.Quickratio=Quickassets/Currentliabilities=Currentassets-Inventories/CurrentliabilitiesUsually,thecurrentassetsrefertoassetsthatcanbetransferredintocasheasily.Quickassetsarethosethatcanbemosteasilytransferredintocash.Inventoriesareconsideredastheleasttransferablecurrentassets.Therefore,theydon’tbelongtoquickassets.Quickassets5/13equaltocurrentassetsminusinventories.Thesetworatiosreflectthecompany’sabilitytorepayitsliabilities3.Debtratio=Totalliabilities/Totalassets4.Equitymultiplier=Totalassets/Totalowner’sequityActivity：Discussthefollowingquestionwithyourpartner.Explainthemainratiosusedtoreflectacompany’sfinancialstructure.9.2ProfitabilityRatioAnalysis

Profitabilityratiosaremeasurestakentoexaminethecompany’soperatingabilities.Herewejustintroducesomewidelyusedones.6/131.Grossprofitratio=Sales-Costsofgoodssold/TotalsalesThisratioexplainsthepercentageofvalueoverproductcosts.2.Profitmargin=Netincome/TotalsalesThisratioshowshowmuchnetincomewewillgetifwehave$1sale.3.Operatingprofitratio=Earningsbeforeinterestandtaxes/TotalsalesThisratioreflectstheoperatingresults.Formostcorporations,theoperatinggainsarethemostimportantsectionofitstotalearnings.4.Returnonassets=Netincome/Totalassets5.Returnonowner’sequity=Netincome/Totalowner’sequity7/13Thesetworatiosrefertothebalancesheetandtheincomestatement.Theyexplaintheprofitabilityoftotalassetsandnetassets.Theaboveratiosarebasedontheresultofcurrenteconomicactivities.Iftheseratiosarehigh,thecompanywillhavegreatpotentialforfurtherdevelopment.Activity：Discussaboutthefollowingquestionwithyourpartner.Explainthemainratiosusedtoreflectacompany’sprofitability.9.3AssetManagementMeasures

8/13Inadditiontothefinancialstructureanalysisandtheprofitabilityanalysis,therearesomemeasurestoexamineacompany’sassetsmanagement.Theycanevaluatehowwellacompanyusesitsassets.Theyincludeinventoryturnoverandaccountsreceivableturnover.Theyarecalculatedbythefollowingformulations.1.Inventoryturnover=Costsofgoodssold/Inventory2.Accountsreceivableturnover=Sales/AccountsreceivableThetworatiosdescribetheefficiencyoftheassetsmanagement.Activity：Discussthefollowingquestionwithyourpartner.Saysomethingabouttheratioanalysesusedinourdailylife.9/139.4OtherStatementAnalysisMethods

HorizontalAnalysisHorizontalanalysisisalsocalledtrendanalysis.Itusesseveralyears’accountinginformationtodecidewhichaccountschangemorefrequentlyandwhichonesaremorestable.Soit’seasytodecidethetrendofthecompanyinthefuture.VerticalAnalysis

Thereisanothernameforthisanalysismethod,commonsizeanalysis.Itemphasizesontheinternalrelationshipsamongeachitem.Inactualpractice,percentageisoftenused.Throughthepercentage,wecanseewhichitemscontributemoretothecompany.Activity：Discussthefollowingquestionwithyourpartner.10/13What’syouropinionaboutthedifferencesbetweenhorizontalanalysisandverticalanalysis?Notes&Grammar

1.Andtheleverageratiosincludedebtratioandequitymultiplier.Th