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Worked-example setupScope and assumptions
- The packet's two entities are separate; this example uses only Aster Supply LLC.
- Each period has the same 365-day year-end, USD units, line definitions, reporting basis, and statement version.
- No restatement, reclassification, acquisition, or scope change interrupts continuity.
- Period
- Three consecutive 365-day years ended December 31
- Units
- Whole USD at each statement date or for each annual period
- Rounding
- No rounding for source or reconciliation controls
Read the packet as evidence
The headings identify Aster, three consecutive annual periods, whole USD, and one stable basis. That is the proposed comparison contract. We still test it.
Rebuild each equation
For the opening of Year 1, assets are:
$20,000 + $30,000 + $50,000 + $10,000 + $90,000 = $200,000
Liabilities plus equity are:
$25,000 + $15,000 + $60,000 + $100,000 = $200,000
The same component test yields $220,000 at Year 1 end, $250,000 at Year 2 end, and $285,000 at Year 3 end. An equation tie is necessary; it does not prove that every classification is correct.
Test adjacent continuity
Every Year 2 opening component equals the corresponding Year 1 ending component. Every Year 3 opening component equals Year 2 end. Do this by line, not only by total. Equal totals can conceal offsetting source errors.
If Year 3 had opened with $43,000 of receivables while Year 2 ended at $42,000, we would not force the value to tie. We would locate a restatement, reclassification, acquisition, currency, or transcription bridge. Without one, the receivable trend and turnover should stop.
Workpaper conclusion
The supplied Aster packet is internally aligned for the bounded exercise. The calculation can proceed under the stated conventions. This conclusion concerns data integrity, not business performance.
Wrong path
Starting with a percentage-change formula because the columns are adjacent skips the most consequential analytical step: deciding whether the columns represent corresponding facts.
Verified calculation · multi period statement analysis
The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.
- common size balance base
- total assets
- common size income base
- net sales
- days basis
- actual-period-days
- entities
- 1 field
Inspect data
{
"aster": {
"period_order": [
"year_1",
"year_2",
"year_3"
],
"periods": {
"year_1": {
"days_in_period": 365,
"ending": {
"accounts_payable": 28000,
"accounts_receivable": 33000,
"cash": 22000,
"inventory": 54000,
"noncurrent_assets": 100000,
"noncurrent_liabilities": 65000,
"other_current_assets": 11000,
"other_current_liabilities": 16000,
"total_equity": 111000
},
"flow": {
"cost_of_goods_sold": 180000,
"credit_purchases": 150000,
"merchandise_purchases": 184000,
"net_credit_sales": 240000,
"net_income": 28000,
"net_sales": 300000,
"operating_expenses": 80000
},
"opening": {
"accounts_payable": 25000,
"accounts_receivable": 30000,
"cash": 20000,
"inventory": 50000,
"noncurrent_assets": 90000,
"noncurrent_liabilities": 60000,
"other_current_assets": 10000,
"other_current_liabilities": 15000,
"total_equity": 100000
}
},
"year_2": {
"days_in_period": 365,
"ending": {
"accounts_payable": 35000,
"accounts_receivable": 42000,
"cash": 24000,
"inventory": 66000,
"noncurrent_assets": 106000,
"noncurrent_liabilities": 70000,
"other_current_assets": 12000,
"other_current_liabilities": 18000,
"total_equity": 127000
},
"flow": {
"cost_of_goods_sold": 210000,
"credit_purchases": 185000,
"merchandise_purchases": 222000,
"net_credit_sales": 285000,
"net_income": 27000,
"net_sales": 345000,
"operating_expenses": 95000
},
"opening": {
"accounts_payable": 28000,
"accounts_receivable": 33000,
"cash": 22000,
"inventory": 54000,
"noncurrent_assets": 100000,
"noncurrent_liabilities": 65000,
"other_current_assets": 11000,
"other_current_liabilities": 16000,
"total_equity": 111000
}
},
"year_3": {
"days_in_period": 365,
"ending": {
"accounts_payable": 44000,
"accounts_receivable": 55000,
"cash": 25000,
"inventory": 80000,
"noncurrent_assets": 111000,
"noncurrent_liabilities": 75000,
"other_current_assets": 14000,
"other_current_liabilities": 20000,
"total_equity": 146000
},
"flow": {
"cost_of_goods_sold": 235000,
"credit_purchases": 210000,
"merchandise_purchases": 249000,
"net_credit_sales": 325000,
"net_income": 25000,
"net_sales": 380000,
"operating_expenses": 110000
},
"opening": {
"accounts_payable": 35000,
"accounts_receivable": 42000,
"cash": 24000,
"inventory": 66000,
"noncurrent_assets": 106000,
"noncurrent_liabilities": 70000,
"other_current_assets": 12000,
"other_current_liabilities": 18000,
"total_equity": 127000
}
}
}
}
}- horizontal comparison
- immediately-preceding-period
- trend base
- first-period
- zero base percentage policy
- omit
Recomputed result
| Measure | Value |
|---|---|
| 1 ending total assets | 220,000 |
| 1 opening total assets | 200,000 |
| 2 opening total assets | 220,000 |
| 3 ending equation difference | 0 |
| 3 ending total assets | 285,000 |