SOLUTIONS MANUAL
SOLUTIONS MANUAL
, CONTENTS
PART I
Learning Outcomes, Summary Overview, and Problems
CHAPTER 1
Financial Statement Analysis: An Introduction 3
Learning Outcomes 3
Summary Overview 3
Problems 5
CHAPTER 2
Financial Reporting Mechanics 7
Learning Outcomes 7
Summary Overview 7
Problems 8
CHAPTER 3
Financial Reporting Standards 13
Learning Outcomes 13
Summary Overview 14
Problems 15
CHAPTER 4
Understanding Income Statements 19
Learning Outcomes 19
Summary Overview 20
Problems 21
CHAPTER 5
Understanding Balance Sheets 25
Learning Outcomes 25
Summary Overview 25
Problems 27
v
,vi Contents
CHAPTER 6
Understanding Cash Flow Statements 31
Learning Outcomes 31
Summary Overview 31
Problems 32
CHAPTER 7
Financial Analysis Techniques 37
Learning Outcomes 37
Summary Overview 37
Problems 38
CHAPTER 8
Inventories 45
Learning Outcomes 45
Summary Overview 45
Problems 47
CHAPTER 9
Long-Lived Assets 61
Learning Outcomes 61
Summary Overview 62
Problems 64
CHAPTER 10
Non-Current (Long-Term) Liabilities 73
Learning Outcomes 73
Summary Overview 73
Problems 75
CHAPTER 11
Financial Reporting Quality 79
Learning Outcomes 79
Summary Overview 79
Problems 80
CHAPTER 12
Financial Statement Analysis: Applications 83
Learning Outcomes 83
Summary Overview 83
Problems 84
CHAPTER 13
Income Taxes 87
Learning Outcomes 87
, Contents vii
Summary Overview 88
Problems 88
CHAPTER 14
Employee Compensation: Post-Employment and Share-Based 93
Learning Outcomes 93
Summary Overview 93
Problems 94
CHAPTER 15
Intercorporate Investments 101
Learning Outcomes 101
Summary Overview 101
Problems 102
CHAPTER 16
Multinational Operations 111
Learning Outcomes 111
Summary Overview 112
Problems 114
CHAPTER 17
Evaluating Quality of Financial Reports 121
Learning Outcomes 121
Summary Overview 121
Problems 123
CHAPTER 18
Integration of Financial Statement Analysis Techniques 125
Learning Outcomes 125
Summary Overview 125
Problems 126
PART II
Solutions
CHAPTER 1
Financial Statement Analysis: An Introduction 135
Solutions 135
CHAPTER 2
Financial Reporting Mechanics 137
Solutions 137
SOLUTIONS MANUAL
, CONTENTS
PART I
Learning Outcomes, Summary Overview, and Problems
CHAPTER 1
Financial Statement Analysis: An Introduction 3
Learning Outcomes 3
Summary Overview 3
Problems 5
CHAPTER 2
Financial Reporting Mechanics 7
Learning Outcomes 7
Summary Overview 7
Problems 8
CHAPTER 3
Financial Reporting Standards 13
Learning Outcomes 13
Summary Overview 14
Problems 15
CHAPTER 4
Understanding Income Statements 19
Learning Outcomes 19
Summary Overview 20
Problems 21
CHAPTER 5
Understanding Balance Sheets 25
Learning Outcomes 25
Summary Overview 25
Problems 27
v
,vi Contents
CHAPTER 6
Understanding Cash Flow Statements 31
Learning Outcomes 31
Summary Overview 31
Problems 32
CHAPTER 7
Financial Analysis Techniques 37
Learning Outcomes 37
Summary Overview 37
Problems 38
CHAPTER 8
Inventories 45
Learning Outcomes 45
Summary Overview 45
Problems 47
CHAPTER 9
Long-Lived Assets 61
Learning Outcomes 61
Summary Overview 62
Problems 64
CHAPTER 10
Non-Current (Long-Term) Liabilities 73
Learning Outcomes 73
Summary Overview 73
Problems 75
CHAPTER 11
Financial Reporting Quality 79
Learning Outcomes 79
Summary Overview 79
Problems 80
CHAPTER 12
Financial Statement Analysis: Applications 83
Learning Outcomes 83
Summary Overview 83
Problems 84
CHAPTER 13
Income Taxes 87
Learning Outcomes 87
, Contents vii
Summary Overview 88
Problems 88
CHAPTER 14
Employee Compensation: Post-Employment and Share-Based 93
Learning Outcomes 93
Summary Overview 93
Problems 94
CHAPTER 15
Intercorporate Investments 101
Learning Outcomes 101
Summary Overview 101
Problems 102
CHAPTER 16
Multinational Operations 111
Learning Outcomes 111
Summary Overview 112
Problems 114
CHAPTER 17
Evaluating Quality of Financial Reports 121
Learning Outcomes 121
Summary Overview 121
Problems 123
CHAPTER 18
Integration of Financial Statement Analysis Techniques 125
Learning Outcomes 125
Summary Overview 125
Problems 126
PART II
Solutions
CHAPTER 1
Financial Statement Analysis: An Introduction 135
Solutions 135
CHAPTER 2
Financial Reporting Mechanics 137
Solutions 137
