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orizontal Analysis of Income Statement The following data (in millions) were taken from the financial statements of Costco Wholesale Corporation:   Recent Year Prior Year Revenue $516,186     $474,000     Operating expenses 488,675     455,000     Operating income $27,511     $19,000     a.  For Costco, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the r

orizontal Analysis of Income Statement The following data (in millions) were taken from the financial statements of Costco Wholesale Corporation:   Recent Year Prior Year Revenue $516,186     $474,000     Operating expenses 488,675     455,000     Operating income $27,511     $19,000     a.  For Costco, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the r

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. Horizontal Analysis of Income Statement

    The following data (in millions) were taken from the financial statements of Costco Wholesale Corporation:

      Recent Year Prior Year
    Revenue $516,186     $474,000    
    Operating expenses 488,675     455,000    
    Operating income $27,511     $19,000    

    a.  For Costco, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for:

    1. Revenue
    2. Operating expenses
    3. Operating income
      Amount of Change
    (in millions)    		 Percent of Change
    (round to 1 decimal place)    		 Increase or Decrease
    1. Revenue      
    2. Operating expenses      
    3. Operating income      


    b.  During the recent year,__________.

    c.  The operating results of Target Corporation for the recent year are provided below.

      Amount of Change Percent of Change
    Increase or Decrease
    1. Revenue $5,484 8.6 % Increase
    2. Operating expenses $3,419 7.1 % Increase
    3. Operating income $2,074 13.8 % Increase

    How should the operating results of Target and Costco for the recent year be evaluated?

 
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