Comparative Income Statement Items

Comparative income statement example.

Comparative income statement items. Sales revenue sales revenue sales revenue is the income received by a company from its sales of goods or the provision of services. There is no standard comparative income statement format. Vertical analysis of the income statement shows the revenue or sales number as 100 and all other line items as a percentage of sales. This percentage change in items is mentioned in column v of the comparative income statement.

Recall that horizontal analysis calculates changes in comparative statement items or totals. The comparative financial statements of synotech inc will serve as a basis for an example of horizontal analysis and vertical analysis of a balance sheet and a statement of income and retained earnings. Analyst and business managers use the income statement balance sheet and cash flow statementfor comparative purposes. Based on the above comparative income statement of abc limited it can be analyzed how an increase in sales 25 over the previous year has impacted the net profit increased by 100 in absolute terms over the previous year and how various lines items have contributed.

Now given this let s try to understand how a comparative statement is interpreted using an example. Then create columns for each accounting period with the most current closest to the left. The most common income statement items include. Using the business s tax returns select the appropriate tax year and enter the applicable line items in the table below.

The easiest way to create a comparative income statement is to list the accounts in the left column. Which compare income statement accounts from one year to the next. Comparative income statement format of abc limited for the period ended 2016 and 2017. Comparative income analysis worksheet.

In the case of an income statement it is revenue net sales. Take a look at each example of a comparative income statement. Consider the following income statement for m s singhania for the years ended december 31st 2017 and december 31st 2018. The comparative statement compares current year s financial statement with prior period statements by listing results side by side.