Create the following information for the company by the name of
Horizontal Analysis (Balance Sheet):
This procedure compares each line item of the balance sheet to that of a previous period, usually the prior year. This comparison is made in terms of either an absolute dollar amount or as a percentage increase or decrease from the prior period’s balance sheet.
Assets:
Cash and Cash Equivalents: +$100,000 (+25%)
Accounts Receivable: -$50,000 (-10%)
Inventory: +$30,000 (+6%)
Total Assets: +$180,000 (+15%)
Liabilities and Equity
Accounts Payable: -$20,000 (-4%)
Long-Term Debt: -$85,000 (-15%)
Stockholders’ Equity: +$295,000 (+25%)
Horizontal Analysis (Income Statement):
This procedure compares each line item of the income statement to that of a previous period in order to determine any changes relative to the past performance. This comparison is expressed as an absolute dollar amount or as a percentage increase or decrease from the prior period’s income statement.
Revenues : Sales+ $200,00 (+ 25 %) Cost Of Goods Sold :+ $100 ,00(+ 20 %) Gross Profit :+ $50 00(+ 5 % ) Operating Expenses :- $40 00(- 10 % ) Net Income :+ $10 00( + 15 % ).