Slide 14-6 Dollar and percentage Changes Dollar Change: Dollar Analysis Period Base Period Change Amount Amount Percentage Change: Percent Base Period Change s Dollar Change Amount Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 14-6 Irwin/McGraw-Hill Dollar Change: Analysis Period Amount Base Period Amount Dollar Change = Dollar and Percentage Changes Percentage Change: Dollar Change Base Period Amount Percent Change % =
Slide 14-7 Dollar and percentage Changes Evaluating Percentage Changes in Sales and Earnings Sales and earnings In measuring quarterly should increase at changes, compare to more that the rate the same quarter in of inflation the previous year. Percentages may be misleading when the base amount is small Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 14-7 Irwin/McGraw-Hill Dollar and Percentage Changes Sales and earnings should increase at more that the rate of inflation. In measuring quarterly changes, compare to the same quarter in the previous year. Percentages may be misleading when the base amount is small. Evaluating Percentage Changes in Sales and Earnings
Slide 14-8 Dollar and Percentage Changes Example Lets look at the asset section of clover Corporation s comparative balance sheet and income statement for 2001 and 2000. Compute the dollar change and the percentage for cash Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 14-8 Irwin/McGraw-Hill Let s look at the asset section of Clover Corporation s comparative balance sheet and income statement for 2001 and 2000. Compute the dollar change and the percentage for cash. Dollar and Percentage Changes Example
Slide 14-9 CLOVER CORPORATION Comparative Balance sheets December 31 Doar‖ Percent 2001 2000 Change Change* Assets Current assets: Cash and equivalents $12,000$23,500 Accounts receivable net 60.000 40000 Inventory 80,000100,000 Prepaid expenses 3,000 1,200 Total current assets $155000$164700 Property and equipment: Land 40000 40000 Buildings and equipment, net 120000 85000 Total property and equipment$ 160,000$125,000 Total assets $315,000‖$289,700 Percent rounded to one decimal point
?The McGraw-Hill Companies, Inc., 1999 Slide 14-9 Irwin/McGraw-Hill CLOVER CORPORATION Comparative Balance Sheets December 31, 2001 2000 Dollar Change Percent Change* Assets Current assets: Cash and equivalents $ 12,000 $ 23,500 Accounts receivable, net 60,000 40,000 Inventory 80,000 100,000 Prepaid expenses 3,000 1,200 Total current assets $ 155,000 $ 164,700 Property and equipment: Land 40,000 40,000 Buildings and equipment, net 120,000 85,000 Total property and equipment $ 160,000 $ 125,000 Total assets $ 315,000 $ 289,700 * Percent rounded to one decimal point
Slide 14-10 CLOVER CORPORATION Comparative Balance sheets December 31 Doar‖ Percent 2001 2000 Change Change* Assets Current assets: Cash and equivalents 12001023:50|5(150 Accounts receivable net 60.000 40000 Inventory 80,000100,000 Prepaid expenses 2000 2 900 Total current assets $12,000?$23500=$(11,500) Property and equipment: Land 40000 40000 Buildings and equipment, net 120000 85000 Total property and equipment$ 160,000$125,000 Total assets $315,000‖$289,700 Percent rounded to one decimal point
?The McGraw-Hill Companies, Inc., 1999 Slide 14-10 Irwin/McGraw-Hill CLOVER CORPORATION Comparative Balance Sheets December 31, 2001 2000 Dollar Change Percent Change* Assets Current assets: Cash and equivalents $ 12,000 $ 23,500 $ (11,500) Accounts receivable, net 60,000 40,000 Inventory 80,000 100,000 Prepaid expenses 3,000 1,200 Total current assets $ 155,000 $ 164,700 Property and equipment: Land 40,000 40,000 Buildings and equipment, net 120,000 85,000 Total property and equipment $ 160,000 $ 125,000 Total assets $ 315,000 $ 289,700 * Percent rounded to one decimal point. $12,000 ?$23,500 = $(11,500)