BE18.1 (LO 1) K Match each of the following terms with the most appropriate description. Terms 1. Intracompany 2. Intercompany 3. Horizontal analysis 4. Vertical analysis Description a. An analysis tool that expresses relationships among selected items of financial statement data b. An analysis tool that evaluates data by expressing an item in a financial statement as a percentage of a total or base amount within the same financial statement c. Comparisons made between companies d. An analysis tool that evaluates data by calculating and comparing the percentage increase or decrease of an item in a financial statement over multiple periods of time 5. Ratio analysis e. Comparisons made within a company E18.1 (LO 2) AP Video Comparative data from the balance sheet of Dhaliwal Inc. are shown below. 2022 Instructions 2024 Current assets $120,000 2023 $ 80,000 $100,000 Non-current assets 400,000 350,000 300,000 Current liabilities 90,000 70,000 65,000 Non-current liabilities 145,000 125,000 150,000 Common shares 150,000 115,000 100,000 Retained earnings 135,000 120,000 85,000 a. Perform a horizontal percentage of base year analysis using 2022 as the base year. b. Calculate the horizontal percentage change for each year.
BE18.1 (LO 1) K Match each of the following terms with the most appropriate description. Terms 1. Intracompany 2. Intercompany 3. Horizontal analysis 4. Vertical analysis Description a. An analysis tool that expresses relationships among selected items of financial statement data b. An analysis tool that evaluates data by expressing an item in a financial statement as a percentage of a total or base amount within the same financial statement c. Comparisons made between companies d. An analysis tool that evaluates data by calculating and comparing the percentage increase or decrease of an item in a financial statement over multiple periods of time 5. Ratio analysis e. Comparisons made within a company E18.1 (LO 2) AP Video Comparative data from the balance sheet of Dhaliwal Inc. are shown below. 2022 Instructions 2024 Current assets $120,000 2023 $ 80,000 $100,000 Non-current assets 400,000 350,000 300,000 Current liabilities 90,000 70,000 65,000 Non-current liabilities 145,000 125,000 150,000 Common shares 150,000 115,000 100,000 Retained earnings 135,000 120,000 85,000 a. Perform a horizontal percentage of base year analysis using 2022 as the base year. b. Calculate the horizontal percentage change for each year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:BE18.1 (LO 1) K Match each of the following terms with the most appropriate description.
Terms
Description
1. Intracompany a. An analysis tool that expresses relationships among selected items of
financial statement data
2. Intercompany
3. Horizontal
analysis
4. Vertical
analysis
5. Ratio analysis
b. An analysis tool that evaluates data by expressing an item in a financial
statement as a percentage of a total or base amount within the same
financial statement
c. Comparisons made between companies
d. An analysis tool that evaluates data by calculating and comparing the
percentage increase or decrease of an item in a financial statement over
multiple periods of time
e. Comparisons made within a company
E18.1 (LO 2) AP Video Comparative data from the balance sheet of Dhaliwal Inc. are shown below.
2022
Instructions
Current assets
2024
$120,000
2023
$ 80,000
$100,000
Non-current assets
400,000
350,000
300,000
Current liabilities
90,000
70,000
65,000
Non-current liabilities
145,000
125,000
150,000
Common shares
150,000
115,000
100,000
Retained earnings
135,000
120,000
85,000
a. Perform a horizontal percentage of base year analysis using 2022 as the base year.
b. Calculate the horizontal percentage change for each year.
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