a) Horizontal Analysis Answer sheet NATHAN COMPANY Comparative Balance Sheet December 31, 2021 2020 Increase/(decrease) Amount Percent Assets Current assets Plant assets Total assets Liabilities and stockholders' equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity b) Vertical analysis NATHAN COMPANY Comparative Balance Sheet December 31, 2021 2020 Amount Percent Amount Percent Assets Current assets Plant assets Total assets Liabilities and stockholders' equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity 2 Class Exercise: Chapter 18: Name: CLASS EXERCISE CHAPTER 18: FINANCIAL STATEMENT ANALYSIS PRINCIPLES OF ACCOUNTING II (ACC220) SEMESTER 2, 2021-2022 QUESTION 1 The comparative balance sheet of Nathan Company appears below: NATHAN COMPANY Comparative Balance Sheet December 31, 2021 Assets Current assets $ 420,000 Plant assets 780,000 Total assets $ 1,200,000 2020 $ 333,000 567,000 $ 900,000 Liabilities and stockholders' equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity $ 168,000 300,000 432,000 300,000 $ 1,200,000 $ 144,000 162,000 306,000 288,000 $900,000 REQUIRED: (a) Using horizontal analysis, show the percentage change for each balance sheet item using 2020 as a base year. (b) Using vertical analysis, prepare a common size comparative balance sheet