# XACC 280 Week 7 CheckPoint: Ratio, vertical, and Horizontal Analysis Rcvd FULL points and A+ Intructors Final Grade

1. CheckPoint: Ratio, Vertical, and Horizontal AnalysesThe calculations you perform for this CheckPoint form the basis of your analysis of your capstone project.£ Write in 100 to 200 words an explanation of the three tools of financial statement analysis and the function of each.£ Examine PepsiCo, Inc.s Consolidated Balance Sheet on p. A6 in Appendix A of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2005 and 2004.£ Calculate the following for PepsiCo, Inc. and show your work:o The Current Ratio for 2005o The Current Ratio for 2004o Two measures of vertical analysisfor example, compute the current assets divided by total assets for each year, and express your result as a percentageo Two measures of horizontal analysisfor example, compute the total change in assets by percentage, by dividing current assets in 2005 by current assets in 2004. Compute a similar percentage for current liabilities£ Examine The Coca-Cola Companys Consolidated Balance sheet on p. B2 in Appendix B of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2005 and 2004.£ Calculate the following for Coca-Cola and show your work:o The Current Ratio for 2005o The Current Ratio for 2004o Two measures of vertical analysisfor example, compute the current assets divided by total assets for each year, and express your result as a percentageo Two measures of horizontal analysisfor example, compute the total change in assets by percentage, by dividing current assets in 2005 by current assets in 2004. Compute a similar percentage for current liabilitiesPost your explanation and calculations