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

2 monkeys were paid unequally - Https pbslm contrib s3 amazonaws com wgbh - Brief summary - Consumer behavior - Evaluate log3 1 81 - Nahdi pharmacy jubail - Harley davidson space matrix - Qantas club dress code - Nursing windshield survey paper - Shi and singh 7th edition - Plata o plomo silver or lead marie javdani pdf - Aim of the report - Principal component analysis python pandas - Speaking in tongues documentary online free - PYS Assignment W8 - Warby ovens national park - Unit 3 Part 1 - 9 competencies of social work - Lil wayne lighter flick sound effect download - Why is radioactive decay so predictable - Dental abbreviations symbols and acronyms - Unisuper member account number - Dwarf red maple tree facts - Recreation and wellness intranet project cost estimate - American society for public administration code of ethics - Hans salami sticks bulk - Practical strategies for technical communication 2nd edition pdf free - Learner assessment submission and declaration - Gilliam autism rating scale score interpretation - Chamberlain college of nursing downers grove illinois - CRIM J 2 - How much heat required to raise the temperature of water - Patophysiology Topic 1 DQ2 - Sustainable activities for preschoolers - William faulkner barn burning pdf - Global 172 essay - Napster case study answers - What is veracity in nursing ethics - Facts about youth employment - Institute of fire engineers exams - .45 hectares to acres - What is the value of the digit 8 - Decision tree - What is ch2oh in biology - Thompson smarter than you think - Abstract for project report in computer engineering - Immigrants in our own land poem - New2/3 - Empire abrasive equipment manuals - Persuasive techniques in writing - Certificate iv in frontline management - Ya ayyuhal insan ma gharraka - As the twig is bent so grows the tree meaning - What is a free pass in netball - Research paper and Presentation with notes - Globe theatre stratford upon avon - Sim rmit exchange programme - How to write a school captain speech - Glencoe virtual lab punnett square - Limiting reagent lab baking soda vinegar answers - Urgent 3 - WEEK 4 - Security architecture risk assessment - Which of the following statements about ethics audits is false - Collapsible coiler reeler wire spooler - Three questions need three separate answers this is not a paper. - Individual Ted Talk Presentation (up to 5 minutes) make a ppt with pictures and less words, also need a speech draft - Best Presentation Design Services in UAE? - Amplitude vs mixpanel pricing - Selecting and discussing your topic - Gothic arch greenhouse advantages - Military radio code numbers - Dedham vale dog walks - Hr discussion - Immigration accreditation past exam papers - Employees beliefs in the degree to which they influence - Henry foster brave new world - Cisco asa 5515 configuration guide - Manchester united soccer club case study project management - Metadata definition for dummies - Can You Please Solve this - Remove switch from stack cisco 2960 - Thesis and sources - Picot question examples stroke - Annotated Bibliography Assignment - Firms do not compete only against global competitors, but against - Bloomberg businessweek b school connection program - Brian ray creed original motion picture soundtrack songs - Action linking and helping verbs ppt - 206a trafalgar st annandale - Let us break bread together on our knees canton spirituals - Linear vs semi log graph - Brisbane city council mulch - Please help - Proposal Memo (Final draft) and Annotated bibliography - Dna the code of life worksheet - Subtracting scientific notation with negative exponents - Administrative closure in project management - Project management: achieving competitive advantage 5th edition - Beaglebone black user leds gpio