Question

Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease as well.)

b. Prepare a vertical analysis of the balance sheet data for Nike for 2020.

Prepare horizontal and vertical analyses.

E13.6 (LO 2) Here are the comparative income statements of Delaney Corporation.

Delaney Corporation Comparative Income Statements For the Years Ended December 31
		2020		2019
Net sales		$598,000		$500,000
Cost of goods sold		477,000		420,000
Gross profit		121,000		80,000
Operating expenses		80,000		44,000
Net income		$ 41,000		$ 36,000

Answer 1

Comparative Income Statement - Horizontal Analysis
	2020	2019	Difference	Horizontal Analysis
	(a)	(b)	(c) = (a) - (b)	(b) / (c)
Sales	$ 5,98,000	$           5,00,000	$     98,000	19.60%
Cost of goods sold	$ 4,77,000	$           4,20,000	$     57,000	13.57%
Gross profit	$ 1,21,000	$               80,000	$     41,000	51.25%
Operating expenses	$     80,000	$               44,000	$     36,000	81.82%
Net Income	$     41,000	$               36,000	$       5,000	13.89%
Comparative Income Statement - Vertical Analysis
	2020	Percent of Sales	2019	Percent of Sales
	(a)	[(a) / $598000] X 100	(b)	[(b) / $500000] X 100
Sales	$ 5,98,000	100.00%	$ 5,00,000	100.00%
Cost of goods sold	$ 4,77,000	79.77%	$ 4,20,000	84.00%
Gross profit	$ 1,21,000	20.23%	$     80,000	16.00%
Operating expenses	$     80,000	13.38%	$     44,000	8.80%
Net Income	$     41,000	6.86%	$     36,000	7.20%