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Comparative Income Statement Analysis for 2007 and 2008

This document presents exercises for vertical and horizontal analysis of a comparative income statement for the years 2007 and 2008. Exercise 23.1 involves preparing a vertical analysis that encompasses all items from sales through gross profit on sales. Exercise 23.3 requires a horizontal analysis of the income statement items between the two years. Detailed calculations and interpretations of the financial data enhance understanding of the company's performance trends.

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Comparative Income Statement Analysis for 2007 and 2008

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  1. Sample Problems Exercises 23.1 and 23.3

  2. Exercise 23.1 and 23.3 both use the following comparative income statement: .

  3. Exercise 23.1Using the comparative income statement, prepare a vertical analysis of all items from sales through gross profit on sales for the years 2007 and 2008 Click for sound:

  4. Exercise 23.3Using the comparative income statement, prepare a horizontal analysis of all items on the income statement for 2008 and 2007.

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