Exercise on Horizontal & Vertical Analysis Use the financial statements of Exterior Play Inc., a playground equipment manufacturer located in Seattle, Washington to satisfy the following requirements 1. Prepare a comparative income statement showing the percentage increases or decreases for 2017 over 2016. 2. Prepare a common-size comparative balance sheet for 2017 and 2016 Income Statement For Years Ended December 31, 2017 and 2016 Net sales Cost of goods sold Gross profit from sales Advertising expense Sales salaries expense. Office salaries expense. Supplies expense, Depreciation expense Miscellaneous expenses Total operating expenses Operating profit Less interest expense Profit before taxes income taxes 2017 2016 $2.486.000 $2.075.000 1.523.000 1.722.000 $ 963.000 $ 855.000 $145.000 $100.000 240,000 280,000 165.000 200.000 100.000 45.000 26.000 35.000 75.000 15.000 $ 750.000 $185.000 $ 103.000 44.000 $ 141.000 47.000 44,000 049 $57.000 38 000 Assets Current s Cash. Exterior Play Inc. Balance Sheet December 31, 2017 Investments Accounts receivable (net) Inventory Total out assets Property plans, and equipment: Stare equipment ( Office equipment) Buildings (net) Total property, plant, and equipment Total assets Liabeties Current bes Accounts payable Current notes payab Toxes payable Total current liabdition Non-current abilities: hotes pam (secured t mengage on building and land Total abs Equity Contributed capital: Common shares Retained eamings Total equing Total abilities and equity $ 2017 14000 45.000 120.000 250.000 514/000 $ 100.000 400.000 45.000 95.000 $1170.000 $2604 000 S 400,000 $665.000 2016 42.000 46.000 100.000 65.000 5:03.000 $ 100.000 350.000 50.000 675.000 81.175.000 $1678.000 $ 164,000 $140.000 75,000 26.000 30.000 12.000 $ 265,000 $ 242.000 420.000 $475,000 $475.000 544,000 401.000 11.019,000 106.000 $1.484.000 $1478.000

Exercise on Horizontal \& Vertical Analysis Use the financial statements of Exterior Play Inc., a playground equipment manufacturer located in Seattle, Washington to satisfy the following requirements 1. Prepare a comparative income statement showing the percentage increases or decreases for 2017 over 2016. 2. Prepare a common-size comparative balance sheet for 2017 and 2016