common size horizontal analysis does it mean we are using one year for the base to calculate trend analysis? i'm doing 3 years income statement (2006,2007,2008). do I need to use only year 2006 as the base to calculate the trend analysis of year 2007 and 2008?
Please help!thanks a lot!
common size horizontal analysis?
2010-07-15 4:16 am
回答 (1)
2010-07-15 7:34 am
✔ 最佳答案
Answer:Nope. It means you have to convert first the amount into percentage using total assets as the base for the Balance Sheet (Statement of Financial Position) items and net sales for Income Statement items. After converting to common size statement (the one I mentioned above), apply horizontal analysis (trend analysis) and use year 2006 as the base.
參考: My brain only.
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