CHAPTER 3 Analysis of Financial Statements Ratio Analysis Du Pont system Effects of improving ratios Limitations of ratio analysis Qualitative factors 3-1 Balance Sheet: Assets Cash A/R Inventories Total CA Gross FA Less 3-2 Balance sheet: Liabilities and Equity | CHAPTER 3 Analysis of Financial m Statements Ratio Analysis Du Pont system Effects of improving ratios Limitations of ratio analysis Qualitative factors 3-1 Balance Sheet Assets Cash A R Inventories Total CA Gross FA Less Dep. Net FA Total Assets 2003E 85 632 878 000 1 716 480 2 680 112 1 197 160 380 120 817 040 3 497 152 2002 7 282 632 160 1 287 360 1 926 802 1 202 950 263 160 939 790 2 866 592 3-2 Balance sheet Liabilities and Equity 2003E 2002 Accts Payab e 436 800 524 160 Notes payab e 300 000 636 808 Accrua s 408 000 489 600 Tota CL 1 144 800 1 650 568 Long-term debt 400 000 723 432 Common stock 1 721 176 460 000 Retained earnings 231 176 32 592 Tota Equity 1 952 352 492 592 Total L E 3 497 152 2 866 592 .
