Question
Common-size analysis for fiscal year 2001: Given the information presented on Sheet 1, a) Complete these tables using common-size analysis; b) Summarize the highlights from
| Common-size analysis for fiscal year 2001: Given the information presented on Sheet 1, a) Complete these tables using common-size analysis; b) Summarize the highlights from common-size analysis for these companies and indicate possible red flags following the tables.
question A is completed i think but if anyone can help me with question B | |||
| Income Statement - Common Size | |||
| DuPont | Dow | PPG | |
| Revenues | 100.00% | 100.00% | 100.00% |
| COGS | 67.65% | 79.18% | 62.88% |
| Gross Profit | 32.35% | 20.82% | 37.12% |
| SG&A Expenses | 18.25% | 10.10% | 21.59% |
| Net Income | 17.55% | -1.38% | 4.74% |
| Balance Sheet - Common Size | |||
| DuPont | Dow | PPG | |
| Cash & Market Securities | 14.3% | 0.6% | 1.3% |
| Receivables, net | 9.7% | 14.4% | 16.8% |
| Inventories | 10.5% | 12.5% | 10.7% |
| Total Current Assets | 36.7% | 29.0% | 32.0% |
| Fixed Assets, net | 33.0% | 38.2% | 32.6% |
| Total Assets | 100.0% | 100.0% | 100.0% |
| Total Current Liabilities | 20.0% | 22.9% | 23.1% |
| Total Liabilities | 64.2% | 71.9% | 63.6% |
| Total Equity | 35.8% | 28.1% | 36.4% |
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Financial Accounting Reporting And Analysis
Authors: Michael Diamond, James Stice, Earl K. Stice, James D. Stice
5th Edition
0538873019, 978-0538873017
