A horizontal and vertical analysis of the income statement for a service company providing consulting services is
Question:
Instructions
(a) How effectively has the company controlled its operating expenses over the four-year period?
(b) Identify any other income statement components that have significantly changed over the four-year period for the company.
(c) Identify any additional information that might be helpful to you in your analysis of this company over the four-year period.
Taking It Further
In a horizontal analysis, the company's income tax expense has changed exactly as much as profit (66.8%) over the four-year period. Yet, in a vertical analysis, the income tax percentage is different than the profit percentage in each period. Explain how this is possible?
Step by Step Answer:
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow