Identify the calculation for vertical and horizontal analysisand explain how we use the information...

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Accounting

Identify the calculation for vertical and horizontal analysisand explain how we use the information and what the calculationsmean.

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Vertical analysis compares financial statement by expressing each line item on the statement as a percentage of base line Formula for Vertical analysis is Line item Line item valueBase item x 100 An example of Vertical analysis for income statement for XYZ Company states as XYZ company Income Statement Vertical Analysis For year Ending Dec31 2016 Dec31 2017 2016 2017 Sales 450000 100 47500000 100 Cost of goods sold See Answer

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