Escolar Documentos
Profissional Documentos
Cultura Documentos
August 2011
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absolute figures
Convert the same to common-sized statements Balance sheet: Total of sources of funds or application of funds taken as 100. Each item restated accordingly
Income statement: Net sales is taken as 100 and all other items are
restated proportionately
Analysis used for same company over two or more years to study changes in asset-liability mix, impact on profits, proportion of different expenses to net sales, trends in corporate expense pattern
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Trend Analysis Extension of horizontal analysis Compares data for more than two years
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