Requirement 1:
Trend Analysis: Trend analysis is one form of horizontal analysis. It helps the user to know the changes that has been occurred for several years. When trend analysis is done, firstly certain value is taken as a base and further, other figures are matched to the proportion of the base figure.
Formula:
To compute: Trend analysis for net sales revenue and net income.
Requirement 2:
Profitability analysis
Requirement 3:
To evaluate: The ability to sell merchandise inventory.
Requirement 4
To evaluate: The ability to pay debts.
Requirement 5
To evaluate: Dividends using dividends payout ratio
Requirement 6
To determine:Final analysis
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Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
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