ALTERNATE PROBLEMS Horizontal and Vertical Analysis P7. Rylander Corporation's condensed comparative income statements and balance sheets for 2014 and 2013 follow. Net sales Rylander Corporation Comparative Income Statements For the Years Ended December 31, 2014 and 2013 Cost of goods sold Gross margin 2014 $6,553,600 2013 $6,292,800 4,177,600 4,016,800 $2,376,000 $2,276,000 $ 953,600 $1,036,000 Operating expenses: Selling expenses Administrative expenses Total operating expenses Income from operations Interest expense Income before income taxes Income taxes expense Net income Earnings per share 894,400 $1,848,000 $ 528,000 131,200 $ 396,800 124,800 $ 272,000 $ 3.40 846,400 $1,882,400 $ 393,600 78,400 $ 315,200 113,600 $201,600 2.52 Chapter Assignments Rylander Corporation Comparative Balance Sheets December 31, 2014 and 2013 2014 2013 Assets Cash $ 162,400 $ 81,600 Accounts receivable (net) 471,200 458,400 Inventory 1,149,600 1,189,600 Property, plant, and equipment (net) 1,500,000 1,440,000 Total assets $3,283,200 $3,169,600 Liabilities and Stockholders' Equity Accounts payable $ 535,200 Notes payable (short-term) 400,000 $ 954,400 800,000 Bonds payable 800,000 Common stock, $10 par value 800,000 800,000 Retained earnings 748,000 615,200 Total liabilities and stockholders' equity $3,283,200 $3,169,600 707 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