Kevin Inc Presented the following financial data for year 2007 and 2006

Required:

1. Perform Vertical Analysis

2. Perform Horizontal Analysis

3. Perform Ratio Analysis
a. The Current Ratio
b. The Quick Ratio
c. The Receivable Turnover
d. The Collection Ratio
e. The Inventory Turnover
f. The Average Number of Days Inventory In Stock
g. The Debt-To-Equity
h. The Profit Margin
i. The Asset Turnover
4.Provide Analysis/Comment on the vertical & horizontal & ratio difference between 2006 vs. 2007, your answer should state if you believe additional investigation isnecessary.

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Assets Current Assets: Cash Accounts Receivable Inventory Fixed Assets Total Assets 2006 2007 S 45,000.00 S15,000.00 S 30,000.00 S 150,000.00 S 200,000.00 S (50,000.00) S 75.000.00 S 150,000.00 S (75,000.00) S 60,000.00 S 60,000.00 S S 330,000.00 S 425,000.00 S (95.000.00) Balance Sheet Accounts Payable Long Form Debit Stockholder Equity: Common Stock Paid in Capital Retained Earnings Total Liabilities & Stockholder's E S 95,000.00 S 215,000.00 S120,000.00 S 60,000.00 S60,000.00 S S 25,000.00 S25,000.00 S 50,000.00 S 75,000.00 75,000.00 S 150,000.00 S 75,000.00 S50,000.00 S 125,000.00 S 330,000.00 S 425,000.00 S 755,000.00 Comparative Income 2006 250000 125000 125000 Statement 2007 450000 300000 150000 Net Sales Cost of goods sold Gross margin Operating Expenses: Selling Expenses Administrative Expenses 50000 60000 75000 25000 Average Net Receivable Average Inventory Average Assets Aditional Information 155000 65000 330000 210000 130000 340000