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1 page/≈275 words
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Level:
Other
Subject:
Accounting, Finance, SPSS
Type:
Coursework
Language:
English (U.S.)
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Topic:

Analysis basics Accounting, Finance, SPSS Coursework (Coursework Sample)

Instructions:

In performing a horizontal analysis on a company's income statement, you notice that sales have decreased by 4%, but the gross profit has increased by 10%. What are some factors that could cause this to happen? Cite any references used. I only need 150 words.

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Content:


Analysis Basics: Horizontal Analysis
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Analysis Basics: Horizontal Analysis
Horizontal analysis compares historical data within the past financial statements. Examples of data that may be subject to comparison include various line items or rations that are fetched across different periods of accounting (Ivanova & Saraskina, 2016). While horizontally analyzing the income statement of a company, the gross profit may increase despite a decrease in sales.
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