5.1 Horizontal Analysis

Points: 9 items @ 2 points = 18 points

Concept - Comparing performance of various components of a business unit with the past.

Use the table to the right to assist in the calculation of the % change

Directions: Perform a Horizontal Analysis of the income statements based on the information provided below
Daffy and Friends						Change in 2018 compared to 2017	% Change
Income Statement
		2018		2017
Sales		$ 350,000		$ 200,000		$ 150,000	75.0%
Cost of Goods Sold		200,000		124,000
Selling Expenses		35,000		20,000
Administrative Expenses		22,000		18,000
Interest Expense		8,500		8,000
Total Expenses		265,500		170,000
Income Before Taxes		84,500		30,000
Income Tax Expense		3,000		3,000
Net Income		81,500		27,000