00:01
Hello students, here is a question in horizontal analysis, the percentage of a base period amount is calculated.
00:07
So dividing the analysis period amount by the base period amount, dividing the dollar amount of a change since the base period by the base period amount and dividing the item under analysis for the net sale or dividing the item under analysis of a total assets.
00:25
So these are the options given here.
00:27
Let us write down the options.
00:29
The first says dividing the analysis period, dividing the analysis period amount by the base period amount and the second option is dividing a dollar amount, dividing the dollar amount of a change since base period by the base period amount amount and the third option is dividing the item under analysis by net sale, dividing the amount, dividing the item under, dividing the item under analysis by net sales and the fourth option is dividing the item, dividing the item under analysis by total asset, by total assets.
02:14
So horizontal analysis involves a comparing of financial data from different periods to identify the changes or and trend.
02:23
One common method used in horizontal analysis is calculating percentage changes between the base period and the analysis period...