Horizontal Comparative Income Statement Format

The example from safeway stores shows a comparative balance sheet for 2018 and 2019 following a similar format to the income statement above.

Horizontal comparative income statement format. Comparative income statement with horizontal analysis. Colgate horizontal analysis example. Then create columns for each accounting period with the most current closest to the left. Here we have the yoy growth rates of colgate s income statement from 2008 until 2015.

Comparative retained earnings statement with horizontal analysis. The easiest way to create a comparative income statement is to list the accounts in the left column. All items on the balance sheet and income statement for the year 2008 have been compared with the items of balance sheet and income statement for the. Comparative income statement horizontal analysis kalil inc.

Recall that horizontal analysis calculates changes in comparative statement items or totals. Likewise we can do the same for all the other entries in the income statement. The intent of this format is to allow the reader to compare the results of multiple historical periods thereby giving a view of how a business is performing over time. Comparative income statement example.

Comparative income statement years ended dec 31 2017 and 2016 increase decrease 2017 2016 amount percentage net sales 550 000 500 000 50 000 10 0 cost of goods sold 245 000 220 000 25 000 11 4 gross profit 305 000. The 15 000 is an 11 11 increase 15 000 135 000. 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. In above analysis 2007 is the base year and 2008 is the comparison year.

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. Take a look at each example of a comparative income statement. Let us now look at the horizontal analysis of colgate. A comparative income statement presents the results of multiple accounting periods in separate columns.

Horizontal analysis comparative income statement example. This example from safeway stores shows a horizontal. We calculate the growth rate of each of the line items with respect to the previous year. This analysis is considered horizontal because the percentage calculation is based on the one item income from accounting services and continues down the statement for each line item.

Use a multi step format for the income statement. There is no standard comparative income statement format.