BALANCE SHEET ANALYSIS
1. Using elements listed on your company's balance sheet, prepare a common size balance sheet using the following format.
COMPANY
|
Account
|
Current Year
|
%
|
Prior Year
|
' %
|
|
|
|
|
|
|
2. Using elements listed on your company's balance sheet calculate the increase or decrease in dollars and percent between the years using the following format.
COMPANY
|
Account
|
Current Year
|
Prior Year
|
+/- $
|
%
|
|
|
|
|
|
|
3. Using elements listed on your company's balance sheet calculate the ratios and amounts using two years prior as the base year (100%) using the following format.
COMPANY
|
Account
|
Current Year/Base
|
Prior Year/Base
|
|
|
|
|
4. In thoughtful, well-organized paragraphs comment on changes you see in the balance sheet with regards to the company over the two-year period.
Among the items to consider:
a. Comment on any significant changes in the company in assets and liabilities.
b. Comment on any significant changes in the company in the composition of current assets and current liabilities.
c. Which assets in the company have the most significant investment?
d. Is the company financed primarily with debt or equity?
e. Is the debt primarily short-term or long-term?