Another useful technique is called horizontal analysis (or trend analysis). Basically you compare the same line item of an income statement and compute % changes across time. Again, there are various approaches. You can choose a base year and show all other vears as a % of that base. Alternativelv, you can compute the change from the prior vear- and that is what vou will do below for just two lines of the income statement. in net sa as (current sales - prior year sales)Mprior .Compute , change in net income as (current net income prior vear net incomeVprior vear net income sales Round all of the computations to 3 decimal places. Show all of these as a percentage.(i.e. if your answer If there is a decline in income, use a negative sign for your final answer. o do not add that). .3475 round then format it as 34.8 (OWL has the % sign the year before that in the right hand column. I have done a comparison the prior yearf GPS Current Year Prior Year -281*/15797-1.8 % *15516-15797 % Change in net sales % Change in net income -244 % 920 -26.5 % AEO Current Year Prior Year 88017/3521848 2.5% % Change in net sales % |-5689 / 218138 -2.6 % 212449-218138 % Change in net income Another useful technique is called horizontal analysis (or trend analysis). Basically you compare the same line item of an income statement and compute % changes across time. Again, there are various approaches. You can choose a base year and show all other vears as a % of that base. Alternativelv, you can compute the change from the prior vear- and that is what vou will do below for just two lines of the income statement. in net sa as (current sales - prior year sales)Mprior .Compute , change in net income as (current net income prior vear net incomeVprior vear net income sales Round all of the computations to 3 decimal places. Show all of these as a percentage.(i.e. if your answer If there is a decline in income, use a negative sign for your final answer. o do not add that). .3475 round then format it as 34.8 (OWL has the % sign the year before that in the right hand column. I have done a comparison the prior yearf GPS Current Year Prior Year -281*/15797-1.8 % *15516-15797 % Change in net sales % Change in net income -244 % 920 -26.5 % AEO Current Year Prior Year 88017/3521848 2.5% % Change in net sales % |-5689 / 218138 -2.6 % 212449-218138 % Change in net income