In: Finance
1 Horizontal analysis [5–10 min]
McCormick, Corp., reported the following on its comparative income statement:
(In millions) |
2012 |
2011 |
2010 |
Revenue .............................. |
$9,575 |
$9,300 |
$8,975 |
Cost of sales........................ |
6,000 |
5,975 |
5,900 |
Requirement
1. Prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2012 and 2011.
Financial Statement Analysis 751
[$ in millions] | |||||||
2012 | 2011 | 2010 | 2012 | 2011 | |||
Increase/ (Decrease) | % | Increase/ (Decrease) | % | ||||
Revenue | $ 9,575 | $ 9,300 | $ 8,975 | $ 600 | 6.69% | $ 325 | 3.62% |
Cost of sales | $ 6,000 | $ 5,975 | $ 5,900 | $ 100 | 1.69% | $ 75 | 1.27% |
Gross profit | $ 3,575 | $ 3,325 | $ 3,075 | $ 500 | 16.26% | $ 250 | 8.13% |