Question: QUESTION 4 a Differentiate the vertical common-size analysis and horizontal common-size analysis. Elaborate your answer using the following information: Year 2016 2017 2018 2019 (RM)


QUESTION 4 a Differentiate the vertical common-size analysis and horizontal common-size analysis. Elaborate your answer using the following information: Year 2016 2017 2018 2019 (RM) (RM) (RM) (RM) Cash 400.00 404.00 408.04 412.12 1.580.00 1.627.40 1.676.22 1,726.51 Inventory Accounts Receivables 1,120.00 1.142.40 1.165.25 1.188.551 & 3,500.00 3,640.00 3,785.60 3.937.02 Net Plant Equipment Intangibles 400.00 402.00 404.01 406.03 Total Assets 7,000.00 7,215.80 7,439.12 7,670.23 (10 marks) QUESTION 4 a Differentiate the vertical common-size analysis and horizontal common-size analysis. Elaborate your answer using the following information: Year 2016 2017 2018 2019 (RM) (RM) (RM) (RM) Cash 400.00 404.00 408.04 412.12 1.580.00 1.627.40 1.676.22 1,726.51 Inventory Accounts Receivables 1,120.00 1.142.40 1.165.25 1.188.551 & 3,500.00 3,640.00 3,785.60 3.937.02 Net Plant Equipment Intangibles 400.00 402.00 404.01 406.03 Total Assets 7,000.00 7,215.80 7,439.12 7,670.231 (10 marks) b. Explain why the net profit margin is lower than the gross profit margin
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