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Name: Financial Statement Analysis Mid Term Spring 2021 Bba Iii/ Sec A 1. Below Are The Balance Sheet and Income Statement For Anderson Corporation

The document provides financial information for Anderson Corporation including its balance sheet for Year 1 and Year 2, income statement for Year 1, and additional notes. Students are asked to: 1) Prepare cash flows from operations for Anderson Corporation for Year 1 using both direct and indirect methods and comment on the financial health of the company. 2) Analyze the industry and ratios for three companies (A, B, C) operating in different industries based on selected financial ratios. 3) Identify at least seven additional sources of financial reporting information beyond financial statements that are useful for analysis.

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54 views2 pages

Name: Financial Statement Analysis Mid Term Spring 2021 Bba Iii/ Sec A 1. Below Are The Balance Sheet and Income Statement For Anderson Corporation

The document provides financial information for Anderson Corporation including its balance sheet for Year 1 and Year 2, income statement for Year 1, and additional notes. Students are asked to: 1) Prepare cash flows from operations for Anderson Corporation for Year 1 using both direct and indirect methods and comment on the financial health of the company. 2) Analyze the industry and ratios for three companies (A, B, C) operating in different industries based on selected financial ratios. 3) Identify at least seven additional sources of financial reporting information beyond financial statements that are useful for analysis.

Uploaded by

Mahnoor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name:

Financial Statement Analysis


Mid Term Spring 2021
BBA III/ Sec A

1. Below are the balance sheet and income statement for Anderson Corporation.

1
Additional Information
In Year 1, Anderson sold machinery bought at $36, for $18, resulting in a $2 gain on income
statement. $810 in dividends were paid in Year 1. SG&A expense includes $50 of interest expense,
and amortization expense of $30. Cost of good sold includes depreciation of $260.
Income tax expense includes deferred tax liability of $20

(Show and number ALL the working with required format). No marks will given for stating the answers
and not following the instructions even if the answers are correct.

a. Prepare Cash Flows from Operations using the Direct method


b. Prepare Statement of Cash Flows from Operations using the Indirect method
c. Complete the cash flow and comment on the financial health of the firm.

2. Below are selected ratios for three companies which operate in three different industries:
Discount Retail Store, Drug and Utility.

Identify which industry each of the companies A, B and C operate in.


(i) Give two reasons for each of your selections.
(ii) Analyze ratios for each industry.

3. Identify at least seven additional sources of financial reporting information (beyond financial
statements) that are useful for analysis.

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