Question: Can you explain how to do a horizontal analysis? For year 2018, use 2017 as the base year, and for year 2019, use year 2018

 Can you explain how to do a horizontal analysis? For year

Can you explain how to do a horizontal analysis? For year 2018, use 2017 as the base year, and for year 2019, use year 2018 as the base year.

CONSOLIDATED STATEMENTS OF EARNINGS 2019 2018 $ Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development (Note 5) Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Earnings before provision for taxes on income Provision for taxes on income (Note 8) Net earnings 82,059 27,556 54,503 22,178 11,355 890 (357) 318 2,525 266 17,328 2,209 15,119 81,581 27,091 54,490 22,540 10,775 1,126 (611) 1,005 1,405 251 17,999 2,702 15,297 2017 76,450 25,439 51,011 21,520 10,594 408 (385) 934 (42) 309 17,673 16,373 1,300 $ $ 0.48 5.72 5.63 5.70 5.61 $ 0.47 Net earnings per share (Notes 1 and 15) Basic Diluted Average shares outstanding (Notes 1 and 15) Basic Diluted 2,645.10 2,684.30 2,681.50 2,728.70 2,692.00 2,745.30

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