Competitive Income Statement as of Ended December 31

	2010	2009	2008
Revenue	5,945,358	6,072,133	6,656,007
Cost of Goods Sold	1,683,937	1,945,852	2,245,950
Gross Profit	1,618,846	1,494,716	1,376,833
Operating Expenses	1,832,500	1,190,327	1,554,713
Net Income	1,122,094	1,470,179	1,319,041

Balance Sheet, As of December 31

2009 2008

Cash	9,196,917	10,015,877
Inventory	3,337,470	2,996,428
Property and equipment, net	11,100,233	11,198,211
Total Assets	25,592,601	23,481,340
Account Payable	1,059,888	1,254,369
Accrued and other Liabilities	3,994,161	4,426,444
Common Stock	444,722	443,851
Additional Paid-in Capital	7,610,854	7,483,549
Retained Earnings	14,076,238	12,868,799
Total Liabilities and Stockholder's Equity	45,619,096	44,031,724

Perform Horizontal Analysis, Trend (Horizontal) Analysis and Vertical Analysis. Solve the following Questions:

(Horizontal Analysis)

1) Consider the critical items on the Balance Sheet and Income Statement.

2) Select three years balance sheet and Income Statement items that you consider important.

3) Indicate "Why" you consider the balance sheet and Income Statement items you selected are important.

4) Discuss any patters/ trends noted n the selected balance sheets an Income Statement items.

5) What conclusions can you draw from the analysis performed on your selected balance sheet and Income Statement items?

(Vertical Analysis)

1) Consider the critical items on the Balance Sheet and Income Statement.

2) Select three years balance sheet and Income Statement items that you consider important.

3) Indicate "Why" you consider the balance sheet and Income Statement items you selected are important.

4) Discuss any patters /trends noted in the selected balance sheet and Income Statement items.

5) What conclusions can you draw from the analysis performed on your selected balance sheet and Income Statement Items?

Answer rating: 100% (QA)

Horizontal Trend Analysis of Income Statement 2010 2009 2008 Growth 20102009 Revenue 5945358 6072133 6656007 209 Cost of Goods Sold 1683937 1945852 22... View the full answer