Note that discontinued operations increased the company's net income in this case. However, it can also decrease net income. In either case, the future projections of the company should be based on the income number net of discontinued operations. We can also take things further by including the impact of taxes on the income of the discontinued department. Let's assume the tax rate is 15%. Horizontal analysis is also known as trend analysis. This is a technique for analyzing a company's numbers over time. This is done by calculating variances as dollar amounts or percentages. I Let's look at the some of the UCW Bookstore's 2024 and 2023 sales numbers: Sales Revenues Cost of Goods Sold Gross Margin Rent Expense Salary Expense 2024 $472,500 200,000 272,500 100,000 300,000 2023 $460,000 175,000 285,000 100,000 275,000 Increase (decrease) during 2024 2024 value-2023 value 2023 value Amount Percentage Net Income $35.000 $20.000 We calculate the dollar amount by subtracting the 2023 items from the 2024 numbers. The percentage change is calculated by: Note the nominator is the same as the number in the amount column. Hence, to calculate percentage change, we simply divide the dollar difference amount by the 2023 value. Ufu IN

Note that discontinued operations Increased the compan/s net income in this case. However, it can also decrease net income. In elther case, the future projections of the company should be based on the income number nat of discontinued operntions. We can also take things further by induding the impact of taxes on the income of the discontinued department. Let's assume the tax rate is 155K. Horizontal analveis is also known as trend analyik. This is a technique for analyzing a company's numbers over time. This is done by calculatine varlances as dollar amounts or percentages. Let's look at the some of the UCW Bookstore's 2024 and 2023 sales numbers