The Horizontal Analysis
In the horizontal analysis of the company, one considers the various line items in the income statements and the balance sheet with similar items in the previous years. Looking at the year 2008, the company did not perform well. In terms of sales, there was a decrease in the sales compared to the year 2007. There was a decrease of $ 897,000 which is 15% of the sales revenue.
As a result of the low sales, the company suffered a loss in the gross profit. The profit reduced from $1.6M to $1.4M. When analysing the expenses, the website creation and maintenance is a ...