"Assignment 1 - Horizontal and Vertical Analysis

Complete the following assignment and submit your work to the dropbox.

Record your responses on the spreadsheet provided.

Part A: Horizontal Analysis

Item	2015	2014	2013
Net Sales	$980 000	$900 000	$650 000
Cost of Goods Sold	700 000	640 000	480 000
Gross Profit	$280 000	$260 000	$170 000

Instructions:

1. Using horizontal analysis, calculate the trend percentages for net sales, cost of goods sold, and gross profit based on the data provided for Mason Corporation.
2. Explain whether the trends are favorable or unfavorable for each item.

Part B:Horizontal and Vertical Analysis

	December 31, 2015	December 31, 2014
Accounts Receivable	$960 000	$600 000
Inventory	920 000	750 000
Total Assets	4 000 000	3 000 000

Instructions:

1. Using the above data taken from the comparative balance sheet of Hargrove Corporation, complete the horizontal analysis comparing 2015 to the base year 2014.
2. Using the above data from the comparative balance sheet of Hargrove Corporation, complete the vertical analysis that will compare accounts receivable and inventory to total assets for each year.
3. What conclusions can you draw?

Part C:Comparative Balance Sheet - Horizontal and Vertical Analysis

Assets	2014	2013
Current assets	$322	$280
Capital assets	678	520
Current liabilities	$180	$120
Long-term debt	200	160
Common shares	320	320
Retained earnings	300	200

Instructions:

1. Using horizontal analysis, show the percentage change for each balance sheet item of Martin Corporation, using 2013 as the base year.
2. Using vertical analysis, prepare the common size comparative balance sheet for Martin Corporation for each year."

M Welcome to X D21 Unit 7: Annu: x | 5 English - Anr x | E U7A2 Assign X | 4 Home - Goo X | E Unit 7- Horiz x + Copy of unit X & Upcoming a x | - X 2% docs.google.com/spreadsheets/d/1tkrEPRjSOa6hKXHKQTGUj2hjWQSeBmHn/edit?gid=721799997#gid=721799997 M Ca YCDSB APPS Copy of unit 7 Assignment 2 .XLSX Saved to Drive EB & Share M File Edit View Insert Format Data Tools Help Q 5 2 8 5 75% * $ % .0 .00 123 Defaul 11 + B D. K9 fx A B C D E F G H I J K L M N O P Q R S T U V w X Mason Corporation Comparative Income Statement December 31 Increase (Decrease) Increase (Decrease) 5 during 2015 during 2014 2015 2014 2013 Amount % Amount 9% Net Sales 980,000 900,000 650,00 8 Cost of Goods Sold 700,000 640,000 480,000 9 Gross Profit 10 11 12 13 14 15 16 17 + E Assgn 1 part a * Assgn 1 part b horizontal * Assgn 1 part b vertical * Assgn 1 part c horizontal Assgn 1 part c vertical Type here to search M S 27'C Cloudy A D G D ) ENG 8:26 AM 15/7/2024M Welcome to X D21 Unit 7: Annu x | 5 English - Anr x | | U7A2 Assign X | 4 Home - Goo X | E Unit 7- Horiz X + Copy of unit X & Upcoming a x | - X 2% docs.google.com/spreadsheets/d/1tkrEPRjSOa6hKXHKQTGUj2hjWQSeBmHn/edit?gid=521642129#gid=521642129 M Ca YCDSB APPS Copy of unit 7 Assignment 2 .XLSX EB & Share M File Edit View Insert Format Data Tools Help Q 5 2 5 75% $ % .0 .00 123 Defaul 11 + B SA D. A11 fx A B C D E F G H 1 J K L M N Q R S T U V w X Y Z Hargrove Corporation Comparative Balance Sheet December 31 Increase (Decrease) 5 during 2015 6 2015 2014 Amount 7 Accounts Receivable 960,000 600,000 8 Inventory 920,000 750,000 9 10 Total Assets 4,000,000 3,000,000 11 12 13 14 15 16 17 + Assgn 1 part a Assgn 1 part b horizontal * Assgn 1 part b vertical * Assgn 1 part c horizontal * Assgn 1 part c vertical Type here to search Fi m S M 27'C Cloudy A D G O () ENG 8:27 AM 15/7/2024M Welcome to X D21 Unit 7: Annu: x | 5 English - Anr x | E U7A2 Assign X | 4 Home - Goo X | E Unit 7- Horiz X + Copy of unit X & Upcoming a x | - X 2% docs.google.com/spreadsheets/d/1tkrEPRjSOa6hKXHKQTGUj2hjWQSeBmHn/edit?gid=1097105834#gid=1097105834 M Ca YCDSB APPS Copy of unit 7 Assignment 2 .XLSX EB & Share M File Edit View Insert Format Data Tools Help Q 5 0 5 75% $ % .0 .00 123 Calibri Y 11 + B D. C7 fx A B C D E F G H I J K L M N O P Q R S T U w X Y Z Hargrove Corporation Comparative Balance Sheet December 3 5 2015 2014 9% 7 Accounts Receivable 960,000 500,000 8 Inventory 920,000 750,000 9 10 Total Assets 4,000,000 3,000,000 11 12 13 14 15 16 17 + Assgn 1 part a * Assgn 1 part b horizontal * Assgn 1 part b vertical * Assgn 1 part c horizontal * Assgn 1 part c vertical Type here to search Fi S 27'C Cloudy A D @ D () ENG 8:27 AM 15/7/2024M Welcome to X D21 Unit 7: Annu: x | S English - Anr x | E U7A2 Assign X | 4 Home - Goo X | E Unit 7- Horiz X + Copy of unit X & Upcoming a x | X 2% docs.google.com/spreadsheets/d/1tkrEPRjSOa6hKXHKQTGUj2hjWQSeBmHn/edit?gid=1669116865#gid=1669116865 M Ca YCDSB APPS Copy of unit 7 Assignment 2 .XLSX EB & Share M File Edit View Insert Format Data Tools Help Q 5 2 5 75% * $ % .0 .00 123 Defaul - 11 + B D. D7 fx B C D E F G H I J K L M N O P R S T U v w X Y Z Martin Corporation Condensed Balance Sheet December 31 Increase (Decrease) 5 during 2015 2015 2014 Amount 9% 7 Assets 8 Current assets $ 322 $ 280 Capital assets 678 520 10 11 Liabilities and Shareholders' Equity 12 Current liabilities 180 120 13 Long-term debt 200 160 14 15 Common shares 320 320 16 Retained earnings 300 200 17 18 19 20 21 22 23 24 25 26 + E Assgn 1 part a * Assgn 1 part b horizontal * Assgn 1 part b vertical * Assgn 1 part c horizontal * Assgn 1 part c vertical Type here to search S 27'C Cloudy A D G O () ENG 8:28 AM 15/7/2024M Welcome to X D21 Unit 7: Annu: x | 5 English - Anr x | E U7A2 Assign X | 4 Home - Goo X | E Unit 7- Horiz X + Copy of unit X & Upcoming a x | - X 2% docs.google.com/spreadsheets/d/1tkrEPRjSOa6hKXHKQTGUj2hjWQSeBmHn/edit?gid=1728561382#gid=1728561382 M Ca YCDSB APPS Copy of unit 7 Assignment 2 .XLSX EB & Share File Edit View Insert Format Data Tools Help M Q 5 @ 5 75% $ % .0 .00 123 Defaul - 11 + B D. G9 fx B C D E F G H 1 J K M N O P R S T U V w X Y Z Martin Corporation Condensed Balance Sheet December 31 2015 96 2014 96 5 Assets Current assets $ 322 280 Capital assets 678 520 8 Total assets 9 Liabilities and Shareholders' Equity 10 Current liabilities 180 120 11 Long-term debt 200 160 12 Total liabilities 13 Common shares 320 320 14 Retained earnings 300 200 15 Total shareholders' equity 16 Total liabilities and shareholders' equity 17 18 19 20 21 22 23 24 25 26 + E Assgn 1 part a * Assgn 1 part b horizontal * Assgn 1 part b vertical * Assgn 1 part c horizontal * Assgn 1 part c vertical Type here to search S M 27'C Cloudy A D G O () ENG 8:28 AM 15/7/2024