Chapter 2, Problem 2.23EX

a.

To determine

Horizontal analysis of income statement:

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

The amount of change in millions, and the percentage of change from the Year 1 to the Year 2.

b.

To determine

To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.