BE18.1 (LO 1) K Match each of the following terms with the most appropriate description. Terms 1. Intracompany 2. Intercompany 3. Horizontal analysis 4. Vertical analysis Description a. An analysis tool that expresses relationships among selected items of financial statement data b. An analysis tool that evaluates data by expressing an item in a financial statement as a percentage of a total or base amount within the same financial statement c. Comparisons made between companies d. An analysis tool that evaluates data by calculating and comparing the percentage increase or decrease of an item in a financial statement over multiple periods of time 5. Ratio analysis e. Comparisons made within a company E18.1 (LO 2) AP Video Comparative data from the balance sheet of Dhaliwal Inc. are shown below. 2022 Instructions 2024 Current assets $120,000 2023 $ 80,000 $100,000 Non-current assets 400,000 350,000 300,000 Current liabilities 90,000 70,000 65,000 Non-current liabilities 145,000 125,000 150,000 Common shares 150,000 115,000 100,000 Retained earnings 135,000 120,000 85,000 a. Perform a horizontal percentage of base year analysis using 2022 as the base year. b. Calculate the horizontal percentage change for each year.
BE18.1 (LO 1) K Match each of the following terms with the most appropriate description. Terms 1. Intracompany 2. Intercompany 3. Horizontal analysis 4. Vertical analysis Description a. An analysis tool that expresses relationships among selected items of financial statement data b. An analysis tool that evaluates data by expressing an item in a financial statement as a percentage of a total or base amount within the same financial statement c. Comparisons made between companies d. An analysis tool that evaluates data by calculating and comparing the percentage increase or decrease of an item in a financial statement over multiple periods of time 5. Ratio analysis e. Comparisons made within a company E18.1 (LO 2) AP Video Comparative data from the balance sheet of Dhaliwal Inc. are shown below. 2022 Instructions 2024 Current assets $120,000 2023 $ 80,000 $100,000 Non-current assets 400,000 350,000 300,000 Current liabilities 90,000 70,000 65,000 Non-current liabilities 145,000 125,000 150,000 Common shares 150,000 115,000 100,000 Retained earnings 135,000 120,000 85,000 a. Perform a horizontal percentage of base year analysis using 2022 as the base year. b. Calculate the horizontal percentage change for each year.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter9: Operating Activities
Section: Chapter Questions
Problem 6QE
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning