Assignment $1-$ Horizontal and Vertical Analysis

Complete the following assignment.

Record your responses acording to what i am sending via pictures please. Please follow that template and do all the parts given in pictures according to the given question.

Part A: Horizontal Analysis

Item

$2015$

$2014$

$2013$

Net Sales

$$980000$

$$900000$

$$650000$

Cost of Goods Sold

$700000$

$640000$

$480000$

Gross Profit

$$280000$

$$260000$

$$170000$

Instructions:

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.

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

$$960000$

$$600000$

Inventory

$920000$

$750000$

Total Assets

$4000000$

$3000000$

Instructions:

Using the above data taken from the comparative balance sheet of Hargrove Corporation, complete a horizontal analysis comparing $2015$ to the base year $2014.$

Using the above data from the comparative balance sheet of Hargrove Corporation, complete a vertical analysis that will compare accounts receivable and inventory to total assets for each year.

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:

Using horizontal analysis, show the percentage change for each balance sheet item of Martin Corporation, using $2013$ as a base year.

Using vertical analysis, prepare a common size comparative balance sheet for Martin Corporation for each year.