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Personal Financial Planning
7. CHAPTER 4: PERSONAL FINANCIAL STATEMENTS (PREPARATION AND ANALYSIS)/Vertical and Growth Analysis
7. CHAPTER 4: PERSONAL FINANCIAL STATEMENTS (PREPARATION AND ANALYSIS) Illustration
Syllabus Slides

Vertical and Growth Analysis

01.Core Concepts

• Vertical analysis • Statement of financial position—each item presented as a percentage of total assets • Personal statement of cash flows—each item presented as a percentage of total income • Growth analysis • Calculates the growth rate of certain financial variables over time using time value of money tools