Question
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.6 percent between January
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.6 percent between January and December 2018.
Required:
1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages, for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018.
2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues.
2-b. Excluding income tax, interest, and operating expenses, did Computer Tycoon earn more gross profit per dollar of sales in 2018 compared to 2017?
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