BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Horizontal analysis

The comparative temporary investments and inventory balances of a company follow.

  Current Year Previous Year
Temporary investments $44,000 $40,000
Inventory 57,000 60,000

Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis?

To determine

Horizontal Analysis

Horizontal analysis refers to the measurement of percentage change in the comparative financial statements. It compares the items from the financial statements from one to the other years, and indicates the trends.

To determine: the amount and percentage of increase or decrease to be shown on the balance sheet with horizontal analysis

Given info: Temporary investments and inventory

Explanation

Following formula is used for computing the change in dollar amount of items in the balance sheet for current year and previous year, and the percentage change for the respective items.

Change in amount = Amount in current year-Amou

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Why is productivity important?

Principles of Economics (MindTap Course List)

In the text, we discussed using the discounted dividend model to estimate a stocks intrinsic value. To keep thi...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)