Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Chapter 2, Problem 2.24EX
(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.
To determine: The amount of change in millions, and the percentage of change from the prior year to the recent year.
(b)
To determine
To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.
(c)
To determine
To compare: The conclusions on the operating results of Corporation T and Corporation C.
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Horizontal Analysis of Income Statement
The following data (in millions) were taken from the financial statements of Costco Wholesale Corporation:
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Prior Year
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$474,000
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a. For Costco, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for:
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Amount of Change(in millions)
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Chapter 2 Solutions
Accounting
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