Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Vertical analysis is also known as

09/11/2021 Client: muhammad11 Deadline: 2 Day

WAL-MART ANALYSIS

Directions: Answer all the questions. Please submit your work in Word or PDF formats only. Submit an Excel file to support calculations, but please “cut and paste” your solutions into the Word or PDF file. Be sure to show how you did your calculations.

NOTES FOR HORIZONTAL AND VERTICAL ANALYSIS

Horizontal analysis (also known as trend analysis) is a financial statement analysis technique that shows changes in the amounts of corresponding financial statement items over a period of time. It is a useful tool to evaluate the trend situations.

The statements for two or more periods are used in horizontal analysis. The earliest period is usually used as the base period and the items on the statements for all later periods are compared with items on the statements of the base period. The changes are generally shown both in dollars and percentage.

Dollar and percentage changes are computed by using the following formulas:

Horizontal analysis may be conducted for balance sheet, income statement, schedules of current and fixed assets and statement of retained earnings.

Example:

An example of the horizontal analysis of balance sheet, schedule of current assets , income statement and statement of retained earnings is given below:

Comparative balance sheet with horizontal analysis:

Comparative schedule of current assets:

Comparative income statement with horizontal analysis:

Comparative retained earnings statement with horizontal analysis:

In above analysis, 2007 is the base year and 2008 is the comparison year. All items on the balance sheet and income statement for the year 2008 have been compared with the items of balance sheet and income statement for the year 2007.

The actual changes in items are compared with the expected changes. For example, if management expects a 30% increase in sales revenue but actual increase is only 10%, it needs to be investigated.

Vertical analysis (also known as common-size analysis) is a popular method of financial statement analysis that shows each item on a statement as a percentage of a base figure within the statement.

To conduct a vertical analysis of balance sheet, the total of assets and the total of liabilities and stockholders’ equity are generally used as base figures. All individual assets (or groups of assets if condensed form balance sheet is used) are shown as a percentage of total assets. The current liabilities, long term debts and equities are shown as a percentage of the total liabilities and stockholders’ equity.

To conduct a vertical analysis of income statement , sales figure is generally used as the base and all other components of income statement like cost of sales, gross profit, operating expenses, income tax, and net income etc. are shown as a percentage of sales.

In a vertical analysis the percentage is computed by using the following formula:

A basic vertical analysis needs an individual statement for a reporting period but comparative statements may be prepared to increase the usefulness of the analysis.

Example:

An example of the vertical analysis of balance sheet and income statement is given below:

Comparative balance sheet with vertical analysis:

Current assets:

2008: (550,000 / 1,139,500) × 100 = 48.3%
2007: (530,000 / 1,230,500) × 100 = 43.3%

Comparative income statement with vertical analysis:

Cost of goods sold:

2008: (1,043,000/1,498,000) × 100 = 69.6%
2007: (820,000/1200,000) × 100 = 68.3%

Vertical analysis states financial statements in a comparable common-size format (percentage form). One of the advantages of common-size analysis is that it can be used for inter-company comparison of enterprises with different sizes because all items are expressed as a percentage of some common number. For example, suppose company A and company B belong to same industry. A is a small company and B is a large company. Company A’s sales and gross profit are $100,000 and $30,000 respectively whereas company B’s sales and gross profit are $1,000,000 and $300,000 respectively. If vertical analysis is conducted and sales figure is used as base, it would show a gross profit percentage of 30% for both the companies as shown below:

Company A and B

Comparative Income Statement

For the year ended…….

Company A

Company B

Sales

100,000

100%

1,000,000

100%

Cost of goods sold

70,000

70%

700,000

70%

———

———–

30,000

30%

300,000

30%

———

———–

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Financial Solutions Provider
High Quality Assignments
Unique Academic Solutions
Top Grade Tutor
Top Class Results
Engineering Exam Guru
Writer Writer Name Offer Chat
Financial Solutions Provider

ONLINE

Financial Solutions Provider

I am an academic and research writer with having an MBA degree in business and finance. I have written many business reports on several topics and am well aware of all academic referencing styles.

$30 Chat With Writer
High Quality Assignments

ONLINE

High Quality Assignments

I have assisted scholars, business persons, startups, entrepreneurs, marketers, managers etc in their, pitches, presentations, market research, business plans etc.

$30 Chat With Writer
Unique Academic Solutions

ONLINE

Unique Academic Solutions

I will be delighted to work on your project. As an experienced writer, I can provide you top quality, well researched, concise and error-free work within your provided deadline at very reasonable prices.

$23 Chat With Writer
Top Grade Tutor

ONLINE

Top Grade Tutor

I reckon that I can perfectly carry this project for you! I am a research writer and have been writing academic papers, business reports, plans, literature review, reports and others for the past 1 decade.

$22 Chat With Writer
Top Class Results

ONLINE

Top Class Results

I am a professional and experienced writer and I have written research reports, proposals, essays, thesis and dissertations on a variety of topics.

$47 Chat With Writer
Engineering Exam Guru

ONLINE

Engineering Exam Guru

This project is my strength and I can fulfill your requirements properly within your given deadline. I always give plagiarism-free work to my clients at very competitive prices.

$26 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Living Case Analysis - Monica allende sunday times - Royal college of nursing england - Fisk alloy wire case study - 12 on center framing - Weldon fuel pump overhaul manual - Social innovation - Can t login to bksb - Imperial college london fees - What is the main reason that investment banks create estimates - 5-7 page Research Paper: Internet Staffing Methods Compared To Traditional Staffing Methods - Royal college of surgeons in ireland notable alumni - Dan ford paediatric dentist - Robin hood case study summary - Lasting ill will hatred crossword clue - Killing us softly 4 citation - Greek gods and roman counterparts - Health psychology question paper - Uts civil engineering atar - Jr and ddw pty ltd - Conceptual physics homework help - I need a thoughtful multiple choice question in reference to the passage - Porter's 5 forces toy industry - Working at heights swms nsw - Area of prisms and cylinders - Ul awm style 1015 - The saunders investment bank has the following financing outstanding - Vermont secondary college fees - Discussion Study - Insecure direct object references tutorial - Mutter of protest worlds biggest crossword - Skydive software microsoft - Is the american red cross an ngo - Great gatsby closing line - The payoff of doing a thorough swot analysis is - Gutter brackets distance apart - Why has establishing credibility become so important in the post-trust era? - Hope model of spiritual assessment - Lactic acid fermentation khan academy - D2 finance - Oscar orsen wire headband - A copper wire has a square cross section - Mystic monk coffee case study pdf - Bending light simulation lab answers - Laboratory report gram staining exercise 7 - And symbol in cursive - Statistics - Lactic acid fermentation inputs and outputs - Privilege power and difference chapter 6 summary - Enterprise technical infrastructure security plan - I need 300 words(1 page double spaced ) on Read BLT and CRA_atlantic article. - Probability distribution and expected value worksheet - The statement of cash flows is divided into three sections - Sicilian ice cream cake crossword - Channels / marketing channels can best be described as: - Fence extensions mitre 10 - Lucinda scala quinn husband - Warnbro community high school uniform - Today's electronics specializes in manufacturing - YouTube downloader - A tow truck pulls a car 5.00 km - Marianne moore the paper nautilus - Daily mood chart therapist aid - Texecom premier odyssey 1e wiring diagram - Von neumann architecture registers - Marshall grove great barr - Directions to western carolina university - 2 samuel 11 lesson - A cell phone company offers two different plans - They're a rotten crowd i shouted across the lawn - Nissan triple bottom line - Persuasive speech outline example violent video games - What color is potassium chromate - Continuing the processes - Interpreting weather station models lab answer key - Appearance vs reality macbeth - Critical response essay - Barrier to practice - Lost racing pigeon list - If the financial markets are efficient then - Statistics Excel: Week 3 - Are mission statements outdated - Hyenas marching lion king - Manage personal work priorities and professional development assessment answers - Assetto corsa disable damage indicator - Information Systems - Hyundai motor company subsidiaries - Consumer buying behavior report example - Sheffield hallam disabled student support - Unsw school of electrical engineering and telecommunications - People of Indian Heritage. People of Turkish Heritage. People of Vietnamese Heritage. 900 words minimum - Mitchell antar - Rank the following three stocks by their risk return relationship - Comptia project+ exam dumps - Brandon king the american dream essay - First law of thermodynamics for closed system - 20 team parlay 89 cents - Carnegie mellon notable alumni - Week3 - Texas legislature assignment hb.21