Chapter 13, Problem 4Q

To determine

Comprehensive Income: It is an extension to net income. These include revenue, expenses, gains, and losses that are included in net income of the company. Comprehensive income includes unrealized holding gains and losses on the investments.

Formula:

$\text{Comprehensive}\text{income}=\text{Net income}+\text{Other}\text{comprehensive}\text{income}$

Vertical Analysis: Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount. Use the following formula to calculate vertical analysis percentage:

Formula:

$\text{Vertical analysis percentage }=\left(\frac{\text{Specific item – Base amount}}{\text{Base}\text{amount}}\right)\times 100$

This analysis is otherwise called as common-size statement.

To report:

The amount of comprehensive income and the net income.