Statement Analysis

Question 1

What is the formula for the vertical analysis in the statement of financial position

Answer 1

FS item of year t/ Total asset of year t

Question 2

What is the formula for the vertical analysis in the statement of net income

Answer 2

NI item year t/ Sales year t

Question 3

What is the formula used to do horizontal analysis in either The statement of financial position or statement of income

Answer 3

Position item (year t) - Position item (year t-1) / Position item( year t-1)