财务报表分析整理内容.doc

Chapter1 75.?Problem One: Information contained in Financial Statements List ten different items you would expect to find in an average annual report to shareholders.? Problem One: Information contained in Financial Statements ? Exercise 1-3 (25 minutes) a. Current ratio: 2006: = 1.9 to 1 2005: = 2.5 to 1 2004: = 2.9 to 1 b. Acid-test ratio: 2006: = 0.9 to 1 2005: = 1.3 to 1 2004: = 1.7 to 1 Analysis and Interpretation: Mixons short-term liquidity position has weakened over this two-year period. Both the current and acid-test ratios show declining trends. Although we do not have information about the nature of the companys business, the acid-test ratio shift from ‘1.7 to 1’ down to ‘0.9 to 1’ and the current ratio shift from ‘2.9 to 1’ down to ‘1.9 to 1’ indicate a potential liquidity problem. Still, we must recognize that industry standards may show that the 2004 ratios were too high (instead of 2006 ratios as too low). Chapter2 70.?Problem Two: Earnings Management Earnings management can be defined as the purposeful intervention by management in the earnings process, usually to satisfy selfish objectives (Schipper, 1989).Earnings management techniques can be separated into those that are cosmetic (without cash flow consequences) and those that are real (with cash flow consequences).The management of a company wishes to increase earnings this period.List three cosmetic and three real techniques that can be used to achieve this objective and explain why they will achieve the objective.? Problem Two: Earnings ManagementCosmetic (non-cash flow) techniques would be:● Decrease estimated bad debt expense● Decrease estimated warrantee expense● Increase in estimated salvage value of depreciable assets● Increase discount rate on pension plans● Increase expected rate of return on pension assets● Change from accelerated depreciation to straight line de