State the types of FINANCIAL STATEMENT ANALYSIS?

We can Analyse the statements in 3 ways:

Horizontal analysis
Vertical analysis
Ratio analysis

Horizontal analysis, also called trend analysis

This method enables the user to evaluate a series of financial statement data over a period of time

Each and Every item in Base year is compared with the same item in a different period.

How we can conduct HORIZONTAL ANALYSIS

Comparison of two or more year's financial data is known as horizontal analysis/trend analysis

Steps regarding Procedure:

This is Trend percentage

In this process items are expressed as as Percentage of BASE YEAR

Also termed as TIME SERIES ANALYSIS

Object is to determine Increase/Decrease when compare to Base Year

We can apply this procedure to BALANCE SHEET/INCOME STATEMENT/RETAINED EARNINGS

Horizontal Analysis - Balance Sheet

Private Sub CommandButton1_Click()
Range("E2").Value = "Result"
Range("F2").Value = "Percentage"
last = Range("C" & Rows.Count).End(xlUp).Row
For i = 3 To last
If Cells(i, 3).Value = "" Then
ElseIf Cells(i, 3).Value <> "" Then
With Cells(i, 5)
.Value = Range("C" & i).Value - Range("D" & i).Value
.HorizontalAlignment = xlRight
Range("E" & i) = Format(Range("E" & i), "#,###")
'Percentage Calculation
Range("F" & i) = Range("E" & i) / Range("C" & i)
Range("F" & i).Select
Selection.NumberFormat = "0%"
If Range("D" & i).Value > Range("C" & i).Value Then
Union(Range("E" & i), Range("F" & i)).Font.ColorIndex = 3
End If
End With
End If
Next
Columns("E").AutoFit
End Sub