Please solve & explain.

Demonstration Problem 9-1 Work Papers a. Rosson Company Horizontal Analysis of Income Statements 2015 2014 % Change Revenues: Net Sales $299,000 $246,000 Other Revenues 8,000 9.000 Total Revenues 307,000 255,000 Expenses: Cost of Goods Sold 172.000 138,000 S,G&A Expenses 44,000 40,000 Interest Expense 4.000 4,500 Income Tax Expense 31.000 25,400 Total Expenses 251,000 207,900 Income Before X/O Items 56,000 47,100 Extraordinary Gain (net of tax) 9,000 0 Net Income $ 65,000 $ 47,100 Chapter 09 - Financial Statement Analysis Demonstration Problem 9-1 Work Papers a. continued Rosson Company Horizontal Analysis of Balance Sheets 2015 2014 % Change Assets Cash $ 7,500 $ 12,500 Marketable Securities 1,000 1,500 Accounts Receivable 50,000 47,500 Inventories 150,000 145,000 Prepaid Expenses 5,000 2,500 Total Current Assets 213,500 209,000 Plant and Equipment (net) 147,000 157,000 Intangibles 30,500 0 Total Assets $391,000 $366,000 Liabilities Accounts Payable $ 58,000 $ 79,500 Other Accrued Liabilities 25,000 22,500 Total Current Liabilities 83,000 102,000 Bonds Payable 90,000 100,000 Total Liabilities 173,000 202,000 Stockholders' Equity Common Stock ($5 par) 130,000 130,000 Paid-in Cap. in Excess of Par 20,000 20,000 Retained Earnings 68,000 14,000 Total Stockholders' Equity 218,000 164,000 Total Liabilities and Stk. $391,000 $366,000 Equity