Using the income statement, calculate the vertical and
horizontal analysis and insert your answers in the appropriate
spaces provided
VERTICAL ANALYSIS
HORIZONTAL ANALYSIS
Statement of Operations Income Statement
2017
Percent
2018
percent
CHANGE
PERCENT
Sales (net)
8,100,000
10,000,000
Cost of goods sold
5,300,000
6,000,000
Gross Margin
2,800,000
4,000,000
General Expense
(1,050,000.00)
(1,080,000)
Depreciation Expense
(300,000.00)
(300,000)
Operating Income
1,450,000.00
2,620,000
Interest Expense
(40,000.00)
(50,000)
Income Taxes (35%)
(507,500.00)
(917,000.00)
Net Income
902,500.00
1,653,000