Since the income statement only contains the current fiscal year, trending the data from previous years and the current year can provide the company with a good estimate of the standard income/expenses and any seasonal trends that may exist in the firm. Some companies may also examine the public financial statements in either similar industries to determine if their company is operating within industry norms. Dissimilar industries can also give an organization a feeling about the economy in general or see potential downward fluxs of the disposable income levels.
With whatever industry you are familiar with, what dissimilar industry would you chose to examine to see potential trends coming?
The examination of trends in dissimilar industries does provide good insight into the level of disposable income in the nation, which can help to predict trends in the near future for the business. The best example I can think of would be the accounting industry.
The reason why it's a good comparison is because professional accounting services are services that almost all businesses need. The businessperson could technically get by on their own for a short time, particularly if ...
The solution discusses a dissimilar industry to see potential trends.