I have to do a revenue and expense statement and balance sheet for 2 years I have find the dollar differences and the percentage rate. My mind is a blank I do not remember how to find the percent of financial statements. Is it the same as finding the percent in anything else?
To find the dollar differences and percentage rates for financial statements, you'll need to compare the values of the same items across two different time periods. Here's a step-by-step guide:
1. Gather the financial statements: Collect the revenue and expense statement (also known as the income statement) and the balance sheet for the two years you need to compare.
2. Identify the common items: Look for the line items that appear on both financial statements. These are the items you'll use to calculate the dollar differences and percentage rates.
3. Calculate the dollar difference: Take the value of a specific item for the second year and subtract the value of the same item for the first year. This will give you the dollar difference for that item.
Dollar Difference = Value in Second Year - Value in First Year
4. Calculate the percentage rate: To find the percentage change, divide the dollar difference by the value in the first year. Multiply the result by 100 to express it as a percentage.
Percentage Rate = (Dollar Difference / Value in First Year) * 100
5. Repeat for other items: Follow the same process for each common item in the financial statements.
By calculating and comparing the dollar differences and percentage rates for each item, you can analyze the changes in revenue, expenses, and other financial metrics over the two-year period. This helps in understanding the financial performance and trends of the company.