The following data (in millions) were taken from the financial statements of Costco Whole-sale Corporation:RecentYearPriorYear$116,199$112,640RevenueOperating expensesOperating income112,5753,624109,420$3,220a. For Costco, determine the amount of change in millions and the percent of change(round to one decimal place) from the prior year to the recent year for:1. Revenue2. Operating expenses3. Operating incomeComment on the results of your horizontal analysis in part (a)b.

Question
Asked Nov 30, 2019
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The following data (in millions) were taken from the financial statements of Costco Whole-
sale Corporation:
Recent
Year
Prior
Year
$116,199
$112,640
Revenue
Operating expenses
Operating income
112,575
3,624
109,420
$3,220
a. For Costco, determine the amount of change in millions and the percent of change
(round to one decimal place) from the prior year to the recent year for:
1. Revenue
2. Operating expenses
3. Operating income
Comment on the results of your horizontal analysis in part (a)
b.
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The following data (in millions) were taken from the financial statements of Costco Whole- sale Corporation: Recent Year Prior Year $116,199 $112,640 Revenue Operating expenses Operating income 112,575 3,624 109,420 $3,220 a. For Costco, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income Comment on the results of your horizontal analysis in part (a) b.

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Expert Answer

Step 1

Horizontal analysis of income statement:

 

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

Step 2

a.

 

Determine the amount of change in millions, and the percentage of change from t...

Increase/Decrease
Recent
Prior
Particulars
Year (a)Year (b)Amount in $Percentage
(c)= (a) - (b)(d) = (c) / (a)
$116,199 S112,640
109,420
Revenue
3,559
3.06%
Less: Operating expenses
Operating net income
112,575
3,155
2.80%
S3.624
$3.220
404
11.15%
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Increase/Decrease Recent Prior Particulars Year (a)Year (b)Amount in $Percentage (c)= (a) - (b)(d) = (c) / (a) $116,199 S112,640 109,420 Revenue 3,559 3.06% Less: Operating expenses Operating net income 112,575 3,155 2.80% S3.624 $3.220 404 11.15%

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