Comparative Income Statement Vertical Analysis Example

Show each item on the income statement as a percentage of the net sales for each year.

Comparative income statement vertical analysis example. Comparative income statement example there is no standard comparative income statement format. For example in the vertical analysis of the income statement each expense account is represented as a percentage of total revenue. 98 000 176 000 100 55 68 related readings cfi offers the certified banking credit analyst cbca. Recall that horizontal analysis calculates changes in comparative statement items or totals.

Comparative balance sheet with vertical analysis. Then create columns for each accounting period with the most current closest to the left. On the balance sheet show each asset item as a percentage of the total assets and each liability and equity item as a percentage of the total liabilities and stockholders equity. Horizontal analysis comparative income statement example vertical analysis allows you to see the relationship between each item in the statement as a percentage of the whole.

550 000 1 139 500 100 48 3 2017. Comparative income statement format of abc limited for the period ended 2016 and 2017 based on the above comparative income statement of abc limited it can be analyzed how an increase in sales 25 over the. Comparative income statement with vertical analysis 2018. In the above vertical analysis example we can see that the income decreases from 1 st year to 2 nd year and the income increases to 18 in the 3 rd year.

So by using this method it is easy to understand the net profit as it is easy to compare between the years. 104 000 198 000 100 52 53 2017. 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. Prepare a vertical analysis of the income statement and balance sheet.

A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. The easiest way to create a comparative income statement is to list the accounts in the left column.