I Practice of Horizontal & Verticle Analysis Activity I (1).docx - Practice of Horizontal and Vertical Analysis Activity I Question 1 The following

I Practice of Horizontal & Verticle Analysis Activity I (1).docx

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Practice of Horizontal and Vertical Analysis Activity I Question # 1: The following data are adapted from a recent annual report of Pak Suzuki. Vertical Analysis Horizontal Analysis Assets 2014 ($) Solution 2015($) Solution 2016($) Cash 30,000 2.09% 20,000 66.67% 5,000 Account Receivable 200,000 13.98% 260,000 130% 290,000 Inventory 400,000 27.97% 480,000 120% 600,000 Net Fixed assets 800,000 55.94% 800,000 100% 800,000 Total Assets 1430,000 100% 1560,000 109.0% 1695,000 Liabilities Accounts payable 230,000 16.08% 300,000 130.4% 380,000 Notes payable 200,000 13.98% 210,000 105% 225,000 Bank loan 100,000 6.99% 100,000 100% 140,000 Long term debt 300,000 20.97% 300,000 100% 300,000 Common stock 100,000 6.99% 100,000 100% 100,000 Retained Earnings 500,000 34.96% 550,000 110% 550,000 Total Liabilities 1430,000 100% 1560,000 109.09% 1695,000 Income Statement Sales 40,00,000 100% 43,00,000 107.5% 38,00,000 Cost of goods sold 32,00,000 80% 36,00,000 112.5% 33,00,000 Net profit 3,00,000 7.5% 2,00,000 66.67% 1,00,000 Required: 1. Analyze the company’s financial condition and performance over the last three years by using the vertical analysis. Also identify the problems if any. 2. From the information above prepare horizontal analysis. Analyze the company’s financial condition and performance over the last three years by taking 2014 as base year. Also identify the problems if any.
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Question # 2: Income statements of A Limited for the years ended December 31 2004 to 2008 are given below.
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  • Fall '19
  • Balance Sheet, Generally Accepted Accounting Principles, M Corporation, Horizontal and Vertical Analysis

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