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Common sizing horizontal vertical analysis: questions

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QUESTIONS

____Which of the categories shows the largest percentage increase from the base period to 2011?
____Which of the categories shows the smallest percentage increase from the base period to 2011?
____What overall assessment can be made from the trend analysis regarding Gleason Company?
____If the current trend continues Gleason Company is likely to incur a ______ for 2012.

CHOICES
A. Cost of Goods Sold
B. Net Income
C. The rate of increase in expenses is greater than the rate of increase in revenues.
D. Operating Expenses
E. The rate of increase in revenues is greater than the rate of increase in expenses.
F. Net Loss

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Solution Summary

The response show from the horizontal analysis, COGS and OPERATING EXP are growing faster than revenues.

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QUESTIONS

__A__Which of the categories shows the largest percentage increase from the base period to 2011?
__B__Which of the categories shows the smallest percentage increase from the base period to 2011?
__C__What overall assessment can ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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