Question

In: Finance

1 Horizontal analysis [5–10 min] McCormick, Corp., reported the following on its comparative income statement: (In...

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

Solutions

Expert Solution

[$ 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%

jeff jeffy answered 2 years ago
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