A. Perform horizontal analysis and vertical analysis (for 2019 only) on the comparative

balance sheet. In your answer please remember to indicate if it is an INCREASE or

(DECREASE) and round your findings to ONE decimal place [e.g. -32.996% is -33.0%

or minus 33.0% or (33.0%).

B. Calculate the current ratio for 2019.

C. Assuming credit sales for 2019 were $300,000 calculate the receivables turnover ratio

for 2018.

D. Calculate the days in receivables ratio for 2019.

E. Calculate the allowance ratio for 2019.

F. Comment on the significant changes disclosed by the comparative balance sheet. In your

analysis include:

i) The main findings from the horizontal analysis and vertical analysis

ii) An interpretation of what each of the ratios mean for Great Road Trips

Great Road Trips Ltd. Comparative Statements of Financial Position As at 30/06/2019 As at 30/06/2018 $ 90,000 30,000 3,900 200 1,320 85,000 40,000 2,400 300 1,200 117,620 124.100 60,000 40,000 4,000 10,000 50,000 167,620 36,000 160.100 Current Assets Cash Accounts Receivable Less: Allowance for Bad Debts Supplies Prepaid Insurance Total Current Assets Non-current Assets Vehicles Less: Accumulated Depreciation - Vehicles Total Non-current Assets TOTAL ASSETS Current Liabilities Accounts Payable Unearned Revenue Total Current Liabilities Non-current Liabilities Long Term Loan Total Non-current Liabilities TOTAL LIABILITIES Shareholders' Equity Contributed Capital Retained Earnings Total Shareholders' Equity Total Liabilities & Shareholders' Equity 15,000 9,000 20,000 7,000 24.000 27,000 25,000 5,000 25,000 49,000 5,000 32,000 50,000 68,620 40,000 88.100 118,620 128,100 167,620 160,100