So for horizontal analysis we're looking at AT&T company and their balance sheet for

this year and last year. We will find the change between years in the financial data in
dollars and percentage for the balance sheet and income statement.

So in a quick look at their balance sheet, it looks like total assets have gone up a little
bit, cash increased while accounts receivable decreased. Inventory is up but
intangibles and good will are down. So overall our total assets are up.

So, in term of computing our dollar change, we simply took the current year figure
minus the base year.
To compute the percentage change, we take the dollar change divided by the base
year figure which is (2020) and then we multiply that by hundred percent.
 So for example we compute our dollar change for account receivables by
taking this year (12.31) minus last year (20.22) and we get negative (7.91), so
it’s gone down (7.91), and then we turned that into a percentage by taking
(7.91) divided by the base year, the earlier year (20.22), and that’s a (39.11)
percent decrease in account receivable.
For the rest we used the exact same formulas to calculate the change in dollar as
well as the percentage change.
 current liabilities increased by 67.44% between 2020 and 2021
 Total share holders’ equity increased as well by 2.88 between 2020 and 2021
Which is due to the increase of 13.05 in retained earnings.
Vertical Analysis
So we’re gonna move on to vertical analysis, so it focuses on the relationship among
the financial statements in one given period, so each financial statement item will be
expressed as a percentage.
So if we are talking about the balance sheet, all items are usually expressed as a
percentage of total assets.
So, in a balance sheet, total assets are goanna be our base
 So, cash for example we would take 19.22 divided by 435.61which is our total
assets for this year times 100 = and we get 4.41percent
Here, all the items represent a percentage of the total assets
If we go then to Accounts payable, we use this formula, we take 30.76 divided by
435.61 and we multiply that by 100% to get 7.06 as shown here
If we do that for last year, we take 31.84 divided by 435.61 and we multiply that by
100% to get 7.94
We completed the rest of the table using the exact same formula. It only change
based on the items.