ALTERNATE PROBLEMS Horizontal and Vertical Analysis P7. Rylander Corporation's condensed comparative income statements and balance sheets for 2014 and 2013 follow. 2013 $6,292,800 4,016,800 $2,276,000 Rylander Corporation Comparative Income Statements For the Years Ended December 31, 2014 and 2013 2014 Net sales $6,553,600 Cost of goods sold 4,177,600 Gross margin $2,376,000 Operating expenses: Selling expenses $ 953,600 Administrative expenses 894400 Total operating expenses $1,848,000 Income from operations $ 528,000 Interest expense 131,200 Income before income taxes $ 396,800 Income taxes expense 124,800 Net income $ 272,000 Earnings per share $ 3.40 $1,036,000 846400 $1,882,400 $ 393,600 78,400 $ 315,200 113,600 $ 201,600 $ 2.52 Rylander Corporation Comparative Balance Sheets December 31, 2014 and 2013 2014 2013 Assets $ 81,600 458,400 1,189,600 1,440,000 $3,169,600 Cash $ 162,400 Accounts receivable (net) 471,200 Inventory 1,149,600 Property, plant, and equipment (net) 1,500,000 Total assets $3,283,200 Liabilities and Stockholders'Equity Accounts payable $ 535,200 Notes payable (short-term) 400,000 Bonds payable 800,000 Common stock, $10 par value 800,000 Retained earnings 748,000 Total liabilities and stockholders'equity $3,283,200 $ 954,400 800,000 800,000 615,200 $3,169,600 REQUIRED 1. Prepare schedules showing the amount and percentage changes from 2013 to 2014 for the comparative income statements and the balance sheets. (Round to one deci- mal place.) 2. Prepare common-size income statements and balance sheets for 2013 and 2014. (Round to one decimal place.) 3. ACCOUNTING CONNECTION Comment on the results in requirements 1 and 2 by identifying favorable and unfavorable changes in the components and composition of the statements