63) What is horizontal analysis? 64) Use the Information below for Third World Company to complete the horizontal analysis for sales and net profit for 2011 and 2012. Use 2010 as the base year. ...





63) What is horizontal analysis?



64) Use the Information below for Third World Company to complete the horizontal analysis for sales and net profit for 2011 and 2012. Use 2010 as the base year.







































(In millions)




2012




2011




2010




Sales




$1,950




$1,895




$1,881













base year




Net profit




$135




$130




$131













base year








65) Use the Information below for Wool Mart to complete the horizontal analysis for sales and net profit for 2011 and 2012. Use 2010 as the base year.







































(In millions)




2012




2011




2010




Sales




$243,300




$217,400




$191,329













base year




Net profit




$7,625




$6,730




$6,295













base year






66) Use the partial income statements below to complete a vertical analysis for Pep Boys for 2011 and 2012.












































In millions




2012




2012 %




2011




2011 %




Sales




$2,420







$2,225







Gross profit




784







770







Operating income




206







200







Net income




40







34
















































Answer: In millions




2012




2012 %




2011




2011 %




Sales




$2,420




100.0%




$2,225




100.0%




Gross profit




784




32.4%




770




34.6%




Operating income




206




8.5%




200




9.0%




Net income




40




1.7%




34




1.5%






Diff: 2





67) Use the partial income statements below to complete a vertical analysis for Auto Zone for 2011 and 2012.












































In millions




2012




2012 %




2011




2011 %




Sales




$5,220.0







$4,818.2







Gross profit




2,296.8







2,042.9







Operating income




756.9







674.5







Net income




315







271.3













May 15, 2022
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