Case Study 4 Using the financial information in the following tables, compute the required ratios list on the ratio analysis sheet and then complete the horizontal and vertical analyses worksheet.

ABC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2014 ASSETS 2014 2013 2012 Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets 501,992 335,272 15,174 251,874 $1,604,312 765,215 218,284) 2,151,243 434,215 302,514 505,321 231,100 1,473,150 735,531 (196,842) $2,011,839 375,141 241,764 310,885 136,388 $1,064,178 705,132 (175,400) $1,593,910 Property, plant, and equipment Accumulated depreciation TOTAL ASSETS LIABILITIES Current liabilities Accounts payable Accrued liabilities Income taxes payable Current portion of long-term debt Total current liabilities $248,494 122,192 10,645 42,200 $423,531 366,864 216,533 25,698 42,200 651,295 $322,156 215,474 22,349 42,200 602,179 Long-term liabilities Long-term debt 375,100 425,311 $848,842 400,311 $1,051,606 977,279 TOTAL LIABILITIES STOCKHOLDERS' EQUITY Common stock Additional paid-in capital Retained earnings $370,124 29,546 731 $1,302,401 $2,151,243 356,758 24,881 578,594 $960,233 $2,011,839 $320,841 21,910 273,880 616,631 1,593,910 Total stockholders' equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY