a)
Horizontal Analysis: Horizontal analysis is prepared to make comparison between the financial statements to determine the changes in the financial statements for the previous year to the current year. The changes of the company are measured in dollars as well as in percentage.
Formula:
Vertical Analysis: Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount. Use the following formula to calculate vertical analysis percentage:
Formula:
To prepare: Horizontal analysis of the income statement for Corporation D.
b)
To prepare: Vertical analysis for the income statement for Corporation D for 2019 and 2018.
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