The following condensed financial information is available for WestJet Airlines: Instructions (a) Using horizontal analysis, calculate the
Question:
Instructions
(a) Using horizontal analysis, calculate the percentage of the base-year amount for the income statement and balance sheet, assuming 2008 is the base year.
(b) Using the horizontal analyses you prepared in (a), identify any significant changes between 2008 and 2011.
(c) Which do you think would be more useful-calculating the percentage of the base-year amount or calculating the percentage change between periods-to analyze WestJet between 2008 and 2011? Explain.
Taking It Further
WestJet's financial information for 2010 and 2011 was prepared using IFRS. The financial information for 2008 and 2009 was prepared using the pre-changeover Canadian GAAP. How might these differing standards affect your interpretation of the horizontal analysis?
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