Cornerstone Exercise 12-48 (Algorithmic) Horizontal and Vertical Analysis

Selected data from the financial statements of Jones Hardware Company follows.

	2019		2018
Accounts receivable	$57,300		$38,000
Merchandise inventory	12,900		16,000
Total assets	450,000		380,000
Net sales	380,000		270,000
Cost of goods sold	166,000		210,000

Required:

1. Calculate by how much accounts receivable, merchandise inventory, total assets, net sales, and cost of goods sold increased or decreased in dollar terms from 2018 to 2019.

Accounts receivable	$
Merchandise inventory	$
Total assets	$
Net sales	$
Cost of goods sold	$

2. Indicate what happened from 2018 to 2019 to accounts receivable and merchandise inventory as a percentage of total assets. Round to the nearest whole percent.

Accounts receivable	from % in 2018 to % in 2019.
Merchandise inventory	from % in 2018 to % in 2019.

Indicate what happened from 2018 to 2019 to cost of goods sold as a percentage of net sales (rounded to the nearest whole percent).

Cost of goods sold from % in 2018 to % in 2019.