The financial statements of Shoppers Drug Mart are presented in Appendix A at the end of this book. The following selected condensed information (in thousands) has been taken from these, and the prior years', financial statements:

Instructions
(a) Using horizontal analysis, calculate the percentage of the base-year amount for the information shown above, assuming 2010 is the base year.
(b) Using vertical analysis, calculate the percentage of a base amount for each of the
(1) Income statement and
(2) Statement of financial position, shown above for each year.
(c) Comment on any significant changes you observe from your calculations in parts (a) and (b).

Transcribed Image Text:

Income statement 8 Cost of goods sold 9 1 Profit from operations Interest expense Income tax expense 2 6 1 9 2 Statement of financial position S2,542,820 3 1 Current liabilities Non-current liabilities Shareholders' equity