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Here are the steps to prepare a horizontal analysis of the income statement: 1. Prepare the income statements for 2016 and 2017 showing revenues, expenses, and net income. 2. List the line items down the left column. 3. In the columns for 2016 and 2017, enter the amounts for each line item. 4. In a third column, calculate the percentage change from 2016 to 2017 for each line item. 5. Interpret the percentage changes to analyze trends and identify unusual fluctuations. This will allow comparison of
- Author
- Mark Marasigan
- Language
- EN