Perform a 2019 vertical analysis and a 2018-2019 horizontal analysis of the balance sheets for DMZ,...

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Perform a 2019 vertical analysis and a 2018-2019 horizontal analysis of the balance sheets for DMZ, LLC provided below. What areas of concern, if any. do these analyses highlight? Explain your answer. DMZ, LLC Balance Sheets As of December 31, 2018, and December 31, 2019 2018 $ 28,421 225,019 319,887 3,500 576,827 Cash Accounts receivable Inventory Prepaid insurance Total current assets Equipment Less: Accumulated depreciation Net fixed assets Total assets Accounts payable Wages and payroll taxes payable Short-term portion of mortgage payable Total current liabilities Mortgage payable Total liabilities Owner's equity Total liabilities and owner's equity 385,000 21,150 363,850 $940,677 $331,822 25,889 21,014 378,725 245,000 623,725 316.952 $940,677 2019 $ 1.274 333,558 321,006 3,750 659,588 385,000 63,450 321,550 $981.138 $401,693 26,145 20,085 447,923 224,915 672,838 308,300 $981,138 Perform a 2019 vertical analysis and a 2018-2019 horizontal analysis of the balance sheets for DMZ, LLC provided below. What areas of concern, if any. do these analyses highlight? Explain your answer. DMZ, LLC Balance Sheets As of December 31, 2018, and December 31, 2019 2018 $ 28,421 225,019 319,887 3,500 576,827 Cash Accounts receivable Inventory Prepaid insurance Total current assets Equipment Less: Accumulated depreciation Net fixed assets Total assets Accounts payable Wages and payroll taxes payable Short-term portion of mortgage payable Total current liabilities Mortgage payable Total liabilities Owner's equity Total liabilities and owner's equity 385,000 21,150 363,850 $940,677 $331,822 25,889 21,014 378,725 245,000 623,725 316.952 $940,677 2019 $ 1.274 333,558 321,006 3,750 659,588 385,000 63,450 321,550 $981.138 $401,693 26,145 20,085 447,923 224,915 672,838 308,300 $981,138

Answer rating: 100% (QA)

To perform the vertical analysis we will calculate the percentage of each item on the balance sheet relative to the total assets for each year This wi... View the full answer