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erform a horizontal analysis.

erform a horizontal analysis.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Perform a horizontal analysis.

sel t Frok 8 For the Years Ended December 31 (in millions) On the Dot Trading Income Statement Net Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Interest Expense Income Before Income Taxes Income Tax Expense Net Income 2017 $4,972 3,046 $1,926 1,556 P 370 88 282 94 188 2016 F4,150 2,444 1,706 1,500 206 92 114 42 72 P Increase (Decrease) Amount Percent
Transcribed Image Text:sel t Frok 8 For the Years Ended December 31 (in millions) On the Dot Trading Income Statement Net Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Interest Expense Income Before Income Taxes Income Tax Expense Net Income 2017 $4,972 3,046 $1,926 1,556 P 370 88 282 94 188 2016 F4,150 2,444 1,706 1,500 206 92 114 42 72 P Increase (Decrease) Amount Percent
72 1. What is horizontal analysis? DRILL 1 Presented below are the comparative statements of financial position and comparative income statement of On The Dot Trading. Perform a horizontal analysis showing the increase or decrease for the year 2017 in comparison to the year 2016. Assets Current Assets Cash On The Dot Trading Statement of Financial Position As of December 31 Short-term Investments Accounts Receivable, Net Merchandise Inventory Total Current Assets Property, Plant, and Equipment (net) Total Assets Liabilities and Owner's Equity Current Liabilities Non-Current Liabilities Total Liabilities Owner's Equity Total Liabilities and Owner's Equity ANALYSIS OF FINANCIAL STATEMENTS 2017 158,000 P 130,000 240,000 500,000 1,028,000 2,340,000 $3,368,000 2016 84,000 192,000 200,000 530,000 1,006,000 2,350,000 3,356,000 P 530,000 800,000 P1,330,000 P1,424,000 2,038,000 1,932,000 3,368,000 P3,356,000 P 584,000 840,000 296 Increase (Decrease) Amount Percent
Transcribed Image Text:72 1. What is horizontal analysis? DRILL 1 Presented below are the comparative statements of financial position and comparative income statement of On The Dot Trading. Perform a horizontal analysis showing the increase or decrease for the year 2017 in comparison to the year 2016. Assets Current Assets Cash On The Dot Trading Statement of Financial Position As of December 31 Short-term Investments Accounts Receivable, Net Merchandise Inventory Total Current Assets Property, Plant, and Equipment (net) Total Assets Liabilities and Owner's Equity Current Liabilities Non-Current Liabilities Total Liabilities Owner's Equity Total Liabilities and Owner's Equity ANALYSIS OF FINANCIAL STATEMENTS 2017 158,000 P 130,000 240,000 500,000 1,028,000 2,340,000 $3,368,000 2016 84,000 192,000 200,000 530,000 1,006,000 2,350,000 3,356,000 P 530,000 800,000 P1,330,000 P1,424,000 2,038,000 1,932,000 3,368,000 P3,356,000 P 584,000 840,000 296 Increase (Decrease) Amount Percent
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