Question: 2. Perform a 2019 vertical analysis and a 2018-2019 horizontal analysis of the balance sheets for DMZ, LLC provided below. What areas of concern, if

 2. Perform a 2019 vertical analysis and a 2018-2019 horizontal analysis

2. Perform a 2019 vertical analysis and a 2018-2019 horizontal analysis of the balance sheets for DMZ, LLC provided below. What areas of concern, if any do these analyses highlight? Explain your answer. DMZ, LLC Balance Sheets As of December 31, 2018, and December 31, 2019 2018 2019 28,421 Cash 1,274 333,558 Accounts receivable 225,019 Inventory 319,887 321,006 3,750 Prepaid insurance 3.500 Total current assets 576,827 659,588 Equipment 385,000 385,000 Less: Accumulated depreciation 21,150 363,850 63,450 321,550 Net fixed assets $940,677 $981,138 Total assets $331,822 $401,693 Accounts payable Wages and payroll taxes payable 25,889 26,145 20,085 Short-term portion of mortgage payable 21,014 Total current liabilities 378,725 447,923 Mortgage payable 245,000 224,915 Total liabilities 623,725 672,838 Owner's equity 316,952 308,300 Total liabilities and owner's equity $940,677 $981,138

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!