Income statement information for Einsworth Corporation follows:

Sales	$306,000
Costs of Goods Sold	$73,440
Gross Profit	$232,560

Write a vertical analysis of the income statement for Einsworth Corporation. if required, round percentage answers to the nearest whole numbe

Einsworth Corporation

Vertical Analysis of the Income Statement

	Amount	Percentage
Sales	$306,000	% = ?
Cost of Goods Sold	$73,440	% = ?
Gross Profit	$232,560	% = ?

QUESTION TWO

Long-term Solvency Analysis

The following information was taken from Combine Company's balance sheet:

Fixed assets (net)	$460,600
Long-term liabilities	$329,000
Total liabilities	$806,050
Total stockholers' equity	$1,151,500

Determine the company's ratio of fixed assets to long-term liabilities and ratio of liabilities to stockholders' equity. if required, round your answer to one decimal place.

1. Ratio of fixed assets to long-term liabilities = ?

2. Ratio of liabilities to stockholders' equity = ?

QUESTION THREE

Horizontal Analysis

The comparative accounts payable and long-term debt balances for a company follow:

	Current Year	Previous Year
Accounts Payable	$50,879	$61,300
Long-term debt	$62,776	$53,200

Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? enter all answers as positive numbers.

	Amount of Change	Increase/Decrease	Percentage
Accounts Payable	$ = ?	increase or decrease ?	% = ?
Long-term debt	$ = ?	increase or decrease ?	% = ?