For WizardKim-DP2W7

Discussion Part 2

The company to research: The Coca Cola Company

The simple first step in financial statement analysis is comparing two financial statements

For example, the income statement of this year and the previous year

To make the analysis more meaningful, percentages can be used

Common-size analysis expresses line items or accounts in the financial statements as percentages

The two major forms of common-size analysis are horizontal analysis and vertical analysis

Using the company you researched, prepare a horizontal analysis of the past two year's balance sheet and explain the results.