Discuss significant changes that have occurred in the vertical analysis and horizontal analysis.

Following are the analysis completed:

	Balance Sheet	Vertical Analysis	Balance Sheet	Vertical Analysis	Horizontal Analysis
	Last day year 1	Last day year 1	Last day year 2	Last day year 2	last day years 1 & 2
Assets
Current Assets:
Cash	$ 45,750.00	71.43%	$ 64,255.00	85.16%	140.45%
Accounts Receivable	$ 2,000.00	3.12%	$ -	0.00%	0.00%
Inventory	$ 700.00	1.09%	$ 100.00	0.13%	14.29%
Supplies	$ 5,000.00	7.81%	$ 4,000.00	5.30%	80.00%
Prepaid Rent	$ 6,100.00	9.52%	$ 3,100.00	4.11%	50.82%
Total Current Assets	$ 59,550	92.97%	$ 71,455	94.70%
PP&E:		0.00%		0.00%
Equipment	$ 5,000.00	7.81%	$ 5,000.00	6.63%	100.00%
Accumulated Depreciation	$ (500.00)	-0.78%	$ (1,000.00)	-1.33%	200.00%
Total PP&E	$ 4,500	7.03%	$ 4,000	5.30%	88.89%
Total Assets	$ 64,050	100.00%	$ 75,455	100.00%	117.81%
Liabilities
Current Liabilities:
Accounts Payable	$ 4,500.00	7.03%	$ 8,000.00	10.60%	177.78%
Interest Payable	$ 100.00	0.16%	$ 100.00	0.13%	100.00%
Income Taxes Payable	$ 545.00	0.85%	$ 845.00	1.12%	155.05%
Total Current Liabilities	$ 5,145	8.03%	$ 8,945	11.85%	173.86%
LTD:		0.00%		0.00%
Notes Payable	$ 2,000	3.12%	$ 2,000	2.65%	100.00%
Total Liabilities	$ 7,145	11.16%	$ 10,945	14.51%	153.18%
Owners' Equity		0.00%		0.00%
Stock	$ 55,000	85.87%	$ 55,000.00	72.89%	100.00%
Retained Earnings	$ 1,905	2.97%	$ 9,510.00	12.60%	499.21%
Total Owners' Equity	$ 56,905	88.84%	$ 64,510	85.49%	113.36%
Total Liabilities & Owners' Equity	$ 64,050	100.00%	$ 75,455	100.00%	117.81%