Part C: Comparative Balance Sheet - Horizontal and Vertical Analysis

Assets	2014	2013
Current assets	$430	$285
Capital assets	790	585
Current liabilities	$280	$120
Long-term debt	300	180
Common shares	320	320
Retained earnings	320	250

Instructions:

1.Using horizontal analysis, show the percentage change for each balance sheet item of Voldock Corporation, using 2013 as a base year. Explain whether the trends are favourable or unfavourable.

2.Using vertical analysis, prepare a common size comparative balance sheet for Voldock Corporation for each year. Explain whether the trends are favourable or unfavourable.

Please answer using the template next to each part

A 1 Voldock Corporation Condensed Balance Sheet December 31 2 3 4 5 6 7 Assets Increase (Decrease) during 2014 2013 Amount % 2014 $ 430 $ 790 285 585 8 Current assets 9 Capital assets 10 11 Liabilities and Shareholders' Equity 12 Current liabilities 13 Long-term debt 14 15 Common shares 16 Retained earnings 17 280 300 120 180 320 320 320 250 18 19 20 A B D E Nm 2013 % $ 285 585 1 Voldock Corporation 2 Condensed Balance Sheet 3 December 31 4 2014 % 5 Assets 6 Current assets $ 430 7 Capital assets 790 8 Total assets 9 Liabilities and Shareholders' Equity 10 Current liabilities 280 11 Long-term debt 300 12 Total liabilities 13 Common shares 320 14 Retained earnings 320 15 Total shareholders' equity 16 Total liabilities and shareholders' equity 17 18 120 180 320 250