Perform both a Vertical and Horizontal Trend analysis on the following Income Statement.

	2016	2015
Sales	1,300,000	1,250,000
Cost of Goods Sold	950,000	925,000
Gross Profit	350,000	325,000
Marketing Expense	17,000	23,000
Insurance Expense	25,000	33,000
Depreciation expense	75,000	75,000
Total Operating Expenses	117,000	131,000
Income from operations (EBIT)	233,000	194,000
Interest expense	175,000	125,000
Income before taxes (EBT)	58,000	69,000
Income taxes	23,200	27,600
Net Income	34,800	41,400

(ii) Calculate the following Ratios and comment on whether the ratio has gotten better or worse in 2016 vs 2015.

Current Ratio

Quick Ratio

Debt to Assets

Times Int Earned

Avg Collection

Inventory Turn

Profit Margin

Return on Assets

Return on Equity

	2016	2015
Current Assets	37,618	93,457
Current Liabilities	31,987	35,563
Inventory	4,673	17,899
Total Debt	44,274	42,979
Total Assets	285,198	41,988
EBIT	49,662	10,282
Interest Expenses	14,235	580
Accounts Receivable	14,214	15,533
Sales	288,137	280,515
COGS	11,925	11,676
Profit	40,620	45,335
Total Equity	57,098	90,010

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