Vertical Analysis Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount. Formula: Vertical analysis percentage = ( Specific item Base amount ) × 100 This analysis is otherwise called as common-size statement. To prepare: Comparative income statement for the two-year period. Given info: Income statement for the two year period.

Question

Please make a trial balance, adjusted trial balance, Income statement. end balance ,owners equity statement, Balance sheet , Cash flow statement ,Cash end balance

Answer 1

Question

Chapter 17, Problem 17.2APR

1)

To determine

Vertical Analysis

Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount.

Formula:

Vertical analysis percentage =(Specific itemBase amount)×100

This analysis is otherwise called as common-size statement.

To prepare: Comparative income statement for the two-year period.

Given info: Income statement for the two year period.

2)

To determine

To comment: Significant relationships revealed by the horizontal analysis.

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Please make a trial balance, adjusted trial balance, Income statement. end balance ,owners equity statement, Balance sheet , Cash flow statement ,Cash end balance

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