Question: Can you paraphrase this statement. Based on my analysis, the vertical and horizontal analysis of the income statements and balance sheets of both Company 1
Can you paraphrase this statement. Based on my analysis, the vertical and horizontal analysis of the income statements and balance sheets of both Company 1 and 2, I noticed a few things. First, I noticed that the overall, Company 1 performed much better in the 2018 than Company 2 did with about 30% growth from the previous year. Company 1 also has less cash and inventory when compared to Company 2, but was more profitable than Company 2. Company 1 has less assets than Company 2, but they invested 5% more of their assets than Company 2 does. However, Company 2 has more long-term debt which means they have long term growth ahead. In as much as Company 1 has less debt, they are prompt paying their debts and much quicker than Company 2, with about 20% paid off at the end year of 2018. Conclusion: With my finding from the vertical and horizontal analysis of the income statements and balance sheet of both companies, I highly recommend that we select Company 1 for the acquisition. It is cheaper than Company 2. Much better grown and the overall performance is great which will benefit the company
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