Using the data below from XYZ Company:

XYC Company ($ in millions)	2013	2012
Current assets	$950	$725
Property, plant, and equipment	1,600	1,900
Intangible assets	450	125
Current liabilities	600	500
Long term liabilities	800	750
Common stock	350	300
Retained earnings	1,250	1,200
Sales	875	600
Cost of goods sold	725	500
Selling expenses	50	40
Administrative expenses	35	30
Income tax expense	10	5

Prepare a comparative balance sheet with vertical analysis using for 2013 and 2012, stating each asset as a % of total assets and each liability and stockholders' equity item as a % of total liabilities and stockholders' equity.

Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 2013 when compared with 2012.

Use proper formatting with subtotals, etc. as shown in the exhibits in chapter 17 of the textbook. Round all percentages to one decimal place.

Answer rating: 100% (QA)

The vertical analysis involves segregating the balance sheet or income statement as a percentage of ... View the full answer