Question: Instructions a. Using horizontal analysis, show the percentage change for each balance sheet item using 2013 as a base year.3 marks b. Using vertical analysis,

Instructions

a. Using horizontal analysis, show the percentage change for each balance sheet item using 2013 as a base year.3 marks

b. Using vertical analysis, prepare a common size comparative balance sheet. 3 marks

c. Comment on your analysis.1 mark

Instructionsa. Using horizontal analysis, show the percentage change for each balance sheet

6. The comparative balance sheet of Alto Communications Corporation appears below: ALTO COMMUNICATIONS CORPORATION Comparative Balance Sheet December 31 2014 2013 Horizontal Analysis Vertical Analysis Assets Current assets $322 280 Property, Plant and 678 520 Equipment Total assets 1000 800 Liabilities and shareholders' equity Current liabilities 180 120 Non-current liabilities 200 160 Common shares 320 320 Retained earnings 300 200 Total liabilities and 1000 800 shareholders' equity Instructions a. Using horizontal analysis, show the percentage change for each balance sheet item using 2013 as a base year. 3 marks b. ..Using vertical analysis, prepare a common size comparative balance sheet. 3 marks c. Comment on your analysis. 1 mark

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