Horizontal Analysis: How to Analyze the Changes in Financial Statements over Time
For example, if net sales increase from \$58,081 to \$65,455, the dollar amount of the change is \$7,374. Dividing this by the old amount (\$58,081) gives a percentage change of approximately 12.7%. This information is valuable for stakeholders as it indicates growth in sales. For example, if Mistborn Trading set total assets as the base…