Question: (1) What is Horizontal Analysis? How does it differ from Vertical Analysis? Do you believe one type of analysis is more useful than the other?

(1) What is Horizontal Analysis? How does it differ from Vertical Analysis? Do you believe one type of analysis is more useful than the other?

(2) Perform horizontal analysis on the figures below using dollar amounts and percentages. Round percent answers to one decimal place.

(3) Think of the different users of financial statements and discuss who would be interested in this information (and why).

20Y5 20Y4
Fees Earned $680,000 $850,000
Operating Expenses 541,875 637,500
Net Income $138,125 $212,500

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