In a horizontal analysis of an income statement, what is the correct formula to calculate the percentages?

Question 10 options:

a)	divide the change by net sales

b)	divide each item's amount by last yeat's amount

c)	divide each item's amount by net sales

d)	divide the change by last year's amount

e)	divide each item's amount by profit

In a vertical analysis of a balance sheet, what is the correct formula to calculate the percentages?

Question 11 options:

a)	divide each item by total assets

b)	divide the change by last year's amount

c)	divide each asset item by total assets and divide each liabiity item by total liabilities

d)	divide each item by total current assets

e)	divide each item by total equity

vertical analysis of an income statement tells you

Question 12 options:

a)	how a specific item has changed from year to year.

b)	whether or not a company is a going concern.

c)	the portion of net sales represented by each line on the statement.

d)	whether or not a company is more profitable than its competitors.

e)	how much cash the company has and whether or not it can pay its debts.

A horizontal analysis of a balance sheet tells you

Question 13 options:

a)	how much cash the company has and whether or not it can pay its debts.

b)	whether or not a company is more profitable than its competitors.

c)	how a particular item has changed from year to year

d)	whether or not a company is a going concern.

e)	the portion of total assets that a particular asset comprises