HORIZONTAL AND VERTICAL ANALYSIS Use the following selected data from the financial statements of Harry’s Hardware Company to answer the questions that follow.

2009 2008 Accounts receivable $ 60,000 $ 38,000 Merchandise inventory 12,000 16,000 Total assets 450,000 380,000 Net sales 380,000 270,000 Cost of goods sold 160,000 210,000 Required:
. Calculate how much accounts receivable, merchandise inventory, total assets, net sales, and cost of goods sold increased or decreased from 2008 to 2009.
. Indicate what happened from 2008 to 2009 to accounts receivable and merchandise inventory as a percentage of total assets. Indicate what happened from 2008 to 2009 to cost of goods sold as a percentage of net sales.
Cornerstone Exercise