Chapter 14, Problem 14.3BYP

(a.1)

To determine

Horizontal Analysis: Horizontal analysis is prepared to make comparison between the financial statements to determine the changes in the financial statements for the previous year to the current year. The changes of the company are measured in dollars as well as in percentage.

Formula:

$\text{Percentage Change}=100\times \frac{\text{Later Period}\text{Amount}-\text{Base}\text{Period Amount}}{\text{Base Period Amount}}$

(a)

1.

To compute: The percentage increase / decrease in net sales and net income.

2.

To determine

To compute: The percentage increase / decrease in net sales and net income.

3.

To determine

  The basic earnings per share for 2011.

b)

To determine

Conclusion about the companies