Part C: Comparative Balance Sheet - Horizontal and Vertical Analysis

Assets	2014	2013
Current assets	$322	$280
Capital assets	678	520
Current liabilities	180	120
Long-term debt	200	160
Common shares	320	320
Retained earnings	300	200

Instructions:

1. Using horizontal analysis, show the percentage change for each balance sheet item of Martin Corporation, using 2013 as a base year.
2. Using vertical analysis, prepare a common size comparative balance sheet for Martin Corporation for each year.

spreadsheet

part c horizontal

part c vertical

Martin Corporation Condensed Balance Sheet December 31 Increase (Decrease) during 2015 2014 Amount % 2015 Assets Current assets Capital assets $ 322 $ 678 280 520 Liabilities and Shareholders' Equity Current liabilities Long-term debt 180 200 120 160 Common shares Retained earnings 320 300 320 200 2014 280 520 Martin Corporation Condensed Balance Sheet December 31 2015 Assets Current assets $ 322 Capital assets 678 Total assets Liabilities and Shareholders' Equity Current liabilities 180 Long-term debt 200 Total liabilities Common shares 320 Retained earnings 300 Total shareholders' equity Total liabilities and shareholders' equity 120 160 320 200