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: Vertical analysis percentage = ( Specific item Base amount ) ×100 This analysis is otherwise called as common-size statement or comparative statements. 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: Trend percentage = ( Any period amount Base period amount ) To determine: the difference between comparative statements and trend analysis.

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EXCELSIOR COMMUNITY COLLEGE HOSPITALITY MANAGEMENT ACCOUNING MID-SEMESTER ACCT4301 UNIT 2 Section A of this assessment is to be done on Canvas Section B Answer all questions in this section - round off your answers to two decimal places Instructions: Responses should be written on paper. Take a CLEAR, WELL-LIGHTED picture of each page, the upload to Canvas. 1. The following information relates to Moonlight Hotel 2018 2019 $ change % change Net sales 1,818,500 1,750,000 Cost of Goods Sold 1,005,500 996,000 Operating profit 813,000 754,000 Selling and administrative expenses 506,000 479,000 Income from operations 307,000 275,000 Other expenses and losses Interest expenses 18,000 19,000 Income before income taxes 289,000 256,000 Income tax expenses 86,700 77,000 Net Income 202,300 179,000 Required: i. Use the above information to prepare the comparative analysis income statement.

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Chapter 17, Problem 2DQ

To determine

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:

Vertical analysis percentage = (Specific itemBase amount)×100

This analysis is otherwise called as common-size statement or comparative statements.

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:

Trend percentage = (Any period amountBase period amount)

To determine: the difference between comparative statements and trend analysis.

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EXCELSIOR COMMUNITY COLLEGE HOSPITALITY MANAGEMENT ACCOUNING MID-SEMESTER ACCT4301 UNIT 2 Section A of this assessment is to be done on Canvas Section B Answer all questions in this section - round off your answers to two decimal places Instructions: Responses should be written on paper. Take a CLEAR, WELL-LIGHTED picture of each page, the upload to Canvas. 1. The following information relates to Moonlight Hotel 2018 2019 $ change % change Net sales 1,818,500 1,750,000 Cost of Goods Sold 1,005,500 996,000 Operating profit 813,000 754,000 Selling and administrative expenses 506,000 479,000 Income from operations 307,000 275,000 Other expenses and losses Interest expenses 18,000 19,000 Income before income taxes 289,000 256,000 Income tax expenses 86,700 77,000 Net Income 202,300 179,000 Required: i. Use the above information to prepare the comparative analysis income statement.

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