Question: Draft conclusion based on the below vertical and horizontal analysis, and include the possible strategic risk issue which the company might encounter. Income Statement -
Draft conclusion based on the below vertical and horizontal analysis, and include the possible strategic risk issue which the company might encounter.
Income Statement - Horizontal Analysis
| 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
| Retail Sales | 20 877.00 | 19 994.00 | 18 575.00 | 19 038.00 | 17 285.00 | 15 227.00 |
| Variance | 883.00 | 1 419.00 | (463.00) | 1 753.00 | 2 058.00 | - |
| % | 4% | 8% | -2% | 10% | 14% | 0% |
| Profit from Operations | 3 938.00 | 2 732.00 | 3 048.00 | 3 603.00 | 3 076.00 | 2 537.00 |
| Variance | 1 206.00 | (316.00) | (555.00) | 527.00 | 539.00 | - |
| % | 44% | -10% | -15% | 17% | 21% | 0% |
Vertical analysis
| 2019 | Retail Sales | X | 100 | = | |
| Total Sales | |||||
| 20 877 000 | X | 100 | = | 93.36% | |
| 22 361 000 | |||||
| 2018 | Retail Sales | X | 100 | = | |
| Total Sales | |||||
| 19 994 000 | X | 100 | = | 94.38% | |
| 21 185 000 | |||||
| 2017 | Retail Sales | X | 100 | = | |
| Total Sales | |||||
| 18 575 000 | X | 100 | = | 94.39% | |
| 19 679 000 |
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