BE18.1 (LO 1) K Match each of the following terms with the most appropriate description. Terms 1. Intracompany 2. Intercompany 3. Horizontal analysis 4. Vertical analysis Description a. An analysis tool that expresses relationships among selected items of financial statement data b. An analysis tool that evaluates data by expressing an item in a financial statement as a percentage of a total or base amount within the same financial statement c. Comparisons made between companies d. An analysis tool that evaluates data by calculating and comparing the percentage increase or decrease of an item in a financial statement over multiple periods of time 5. Ratio analysis e. Comparisons made within a company E18.1 (LO 2) AP Video Comparative data from the balance sheet of Dhaliwal Inc. are shown below. 2022 Instructions 2024 Current assets $120,000 2023 $ 80,000 $100,000 Non-current assets 400,000 350,000 300,000 Current liabilities 90,000 70,000 65,000 Non-current liabilities 145,000 125,000 150,000 Common shares 150,000 115,000 100,000 Retained earnings 135,000 120,000 85,000 a. Perform a horizontal percentage of base year analysis using 2022 as the base year. b. Calculate the horizontal percentage change for each year.

BE18.1 (LO 1) K Match each of the following terms with the most appropriate description. Terms 1. Intracompany 2. Intercompany 3. Horizontal analysis 4. Vertical analysis Description a. An analysis tool that expresses relationships among selected items of financial statement data b. An analysis tool that evaluates data by expressing an item in a financial statement as a percentage of a total or base amount within the same financial statement c. Comparisons made between companies d. An analysis tool that evaluates data by calculating and comparing the percentage increase or decrease of an item in a financial statement over multiple periods of time 5. Ratio analysis e. Comparisons made within a company E18.1 (LO 2) AP Video Comparative data from the balance sheet of Dhaliwal Inc. are shown below. 2022 Instructions 2024 Current assets $120,000 2023 $ 80,000 $100,000 Non-current assets 400,000 350,000 300,000 Current liabilities 90,000 70,000 65,000 Non-current liabilities 145,000 125,000 150,000 Common shares 150,000 115,000 100,000 Retained earnings 135,000 120,000 85,000 a. Perform a horizontal percentage of base year analysis using 2022 as the base year. b. Calculate the horizontal percentage change for each year.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 6QE

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