Chapter 15, Problem 15.2SE

To determine

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:

$\text{Percentage Change}=100\times \frac{\text{Later Period}\text{Amount}-\text{Base}\text{Period Amount}}{\text{Base Period Amount}}$

To Prepare: The horizontal analysis of revenue and gross profits for Company V for the year 2018 and 2019, both in dollar amounts, and in percentage.