Learning Objective 10-2
1) A technique for evaluating a series of financial statement data over a period of time is called ________ analysis.
A) horizontal
B) vertical
C) financial statement
D) over-time
2) A technique for evaluating items on a single financial statement is called ________ analysis.
A) horizontal
B) vertical
C) financial statement
D) time-series
3) In vertical analysis, all items on this year's income statement would be divided by ________.
A) total assets
B) net income
C) this year's sales
D) sales for the base year
The following information is provided from EZ Electronics' annual report for the years ended December 31:
2012 2011 2010
Sales$120,000$110,000$100,000
Cost of goods sold40,00034,00030,000
Gross profit80,00076,00070,000
Operating expenses48,00042,00040,000
Income before taxes32,00034,00030,000
Income tax expense9,60010,2009,000
Net income$ 22,400$ 23,800$ 21,000
4) Refer to the EZ Electronics annual report above. This information is from EZ Electronics' ________.
A) income statement
B) balance sheet
C) statement of cash flows
D) statement of changes in shareholders' equity
5) Refer to the EZ Electronics annual report above. Using horizontal analysis with 2010 as the base year,
2011
Sales would be represented as ________.
A) 100%
B) 10%
C) 110%
D) 120%
6) Refer to the EZ Electronics annual report above. Using horizontal analysis with 2010 as the base year,
2012
sales would be represented as ________.
A) 20%.
B) 9%.
C) 109%.
D) 120%.
7) Refer to the EZ Electronics annual report above. Using horizontal analysis with 2010 as the base year,
2011
cost of goods sold would be represented as ________.
A) 113%
B) 133%
C) 13%
D) 33%
8) Refer to the EZ Electronics annual report above. Using horizontal analysis with 2010 as the base year,
2012
cost of goods sold would be represented as ________.
A) 118%
B) 133%
C) 18%
D) 33%
9) Refer to the EZ Electronics annual report above. Using horizontal analysis with 2010 as the base year,
2011
gross profit would be represented as ________.
A) 109%
B) 9%
C) 69%
D) 169%
10) Refer to the EZ Electronics annual report above. Using horizontal analysis with 2010 as the base year,
2012
gross profit would be represented as ________.
A) 114%
B) 14%
C) 67%
D) 80%