Explain horizontal analysis and using the financial results, Accounting Basics

Assignment Help:

Q. Explain horizontal analyses and using the financial results?

The computation of dollar and or percentage changes from one year to the next in an item on financial statements is horizontal analysis. For example in the following data taken from the 2000 annual report of Hewlett-Packard Company the amount of inventory improved by USD 836 million from 1999 October 31 to 2000 October 31. This amount symbolized a 17 per cent increase. To find the amount of the decrease or increase subtract the 1999 amount from the 2000 amount. To find the percentage varies divides the increase or decrease by the 1999 amount. Deliberate the dollar amount and percentage of change in an amount is much more meaningful than merely knowing the amount at one point in time. By examine the data we can see that cash and cash equivalents declined in 2000. Their refuse at least partially explains the increases in some of the other current assets. We can as well see that the company invested in property plant and equipment. Some terms in Hewlett-Packard's list of assets that you don't understand are explained in later chapters. Now all we want you to understand is the nature of horizontal and vertical analyses.


Related Discussions:- Explain horizontal analysis and using the financial results

Help with journalizing payroll transactions and filling, help with journali...

help with journalizing payroll transactions and filling on the cash payments journal, may 15, paid cash for april's payroll tax liability. withheld taxes from april payrolls; emp

Bookkeeping, Under both GAAP and tax depreciation, an asset cannot be depre...

Under both GAAP and tax depreciation, an asset cannot be depreciation until it has been

STUDENT, DO YOU SHOW ANY SOLUTIONS TO THE QUESTIONS

DO YOU SHOW ANY SOLUTIONS TO THE QUESTIONS

A light truck is purchased on january 1 at a cost of $27, A light truck is ...

A light truck is purchased on January 1 at a cost of $27,000. It is expected to serve for eight years and have a salvage value of $3,000. Calculate the depreciation expense for t

A good purchased for $480 sells for $700, A good purchased for $480 sells f...

A good purchased for $480 sells for $700. If the store's operating expenses are 30% of cost, what is the percentage markup on cost? A. 1.5% B. 10.57% C. 15.83% D. 4

Factors and primary objectives, a) Recoginize Trigon Corporation's critical...

a) Recoginize Trigon Corporation's critical success factors and primary objectives. b)What types of information may be helpful in evaluating these objectives?

Accounting Fundamentals, “Ledger is said to be the principal book entry and...

“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.

What is goodwill?, Goodwill is an intangible asset of a organization which ...

Goodwill is an intangible asset of a organization which contains company reputation, fame etc., By goodwill company share value may enhances

Explain about accounting transaction, Q. Explain about Accounting transacti...

Q. Explain about Accounting transaction? An accounting transaction is a business event or activity that causes a measurable change in the accounting equation Assets = Liabiliti

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd