The following $$nancial statement information is summarized from a recent Form $10-$K of Company X $($$ millions$).$

Company X

Balance Sheet

December $31$ Current Year Prior Year

Assets

Current assets

Cash $$3,000$ $$2,646$

Accounts receivable $6,8493,218$

Inventories $8,6786,076$

Other current assets $1,130302$

Total current assets $$19,657$ $$12,242$

Property, plant, and equipment $15,06812,257$

Equity investment $07,336$

Intangible assets $12,3511,180$

Goodwill $16,3722,359$

Other assets $5,3341,876$

Total assets $$68,782$ $$37,250$

Liabilities and Stockholders' Equity

Current liabilities

Short$-$term borrowings $$1,068$ $$774$

Accounts payable $10,0884,315$

Accrued liabilities $5,4013,806$

Total current liabilities $16,5578,895$

Long$-$term debt $13,3153,716$

Other liabilities $7,6104,022$

Total liabilities $37,48216,633$

Stockholders$$ Equity

Common stock $1280$

Additional paid$-$in capital $9,9531,172$

Accumulated other comprehensive income $(214)136$

Retained earnings $25,08722,322$

Treasury stock $(3,977)(3,197)$

Noncontrolling interest $439104$

Total stockholders$$ equity $31,30020,617$

Total liabilities and stockholders' equity $$68,782$ $$37,250$

Company X

Income Statement

For Year Ended December $31$ Current Year Prior Year

Net sales $$103,444$ $$76,392$

Cost of goods sold $76,52054,823$

Gross margins $26,92421,569$

Operating expenses $22,88618,609$

Other expenses, gains, losses $(182)1,028$

Net income $$4,220$ $$1,932$

Required

Horizontal Analysis

Vertical Analysis $$ Current Year

Vertical Analysis $$ Prior Year

a$.$ Prepare a horizontal analysis of the change in balances from the prior year to the current year.

$$Note: Include a negative sign $(-)$ as needed.

Company X

Balance Sheet

December $31$ Current Year Prior Year Numerator Denominator Percentage Change

Assets

Current assets

Cash $$3,000$ $$2,646$ Answer $1$

$-$: Answer $2$

$=$

Accounts receivable $6,8493,218$ Answer $3$

$-$: Answer $4$

$=$

Inventories $8,6786,076$ Answer $5$

$-$: Answer $6$

$=$

Other current assets $1,130302$ Answer $7$

$-$: Answer $8$

$=$

Total current assets $19,65712,242$ Answer $9$

$-$: Answer $10$

$=$

Property, plant, and equipment $15,06812,257$ Answer $11$

$-$: Answer $12$

$=$

Equity investment $07,336$ Answer $13$

$-$: Answer $14$

$=$

Intangible assets $12,3511,180$ Answer $15$

$-$: Answer $16$

$=$

Goodwill $16,3722,359$ Answer $17$

$-$: Answer $18$

$=$

Other assets $5,3341,876$ Answer $19$

$-$: Answer $20$

$=$

Total assets $$68,782$ $$37,250$ Answer $21$

$-$: Answer $22$

$=$

Liabilities and Stockholders' Equity

Current liabilities

Short$-$term borrowings $$1,068$ $$774$ Answer $23$

$-$: Answer $24$

$=$

Accounts payable $10,0884,315$ Answer $25$

$-$: Answer $26$

$=$

Accrued liabilities $5,4013,806$ Answer $27$

$-$: Answer $28$

$=$

Total current liabilities $16,5578,895$ Answer $29$

$-$: Answer $30$

$=$

Long$-$term debt $13,3153,716$ Answer $31$

$-$: Answer $32$

$=$

Other liabilities $7,6104,022$ Answer $33$

$-$: Answer $34$

$=$

Total liabilities $37,48216,633$ Answer $35$

$-$: Answer $36$

$=$

Stockholders$$ Equity

Common stock $1280$ Answer $37$

$-$: Answer $38$

$=$

Additional paid$-$in capital $9,9531,172$ Answer $39$

$-$: Answer $40$

$=$

Accumulated other comprehensive income $(214)136$ Answer $41$

$-$: Answer $42$

$=$

Retained earnings $25,08722,322$ Answer $43$

$-$: Answer $44$

$=$

Treasury stock $(3,977)(3,197)$ Answer $45$

$-$: Answer $46$

$=$

Noncontrolling interest $439104$ Answer $47$

$-$: Answer $48$

$=$

Total stockholders$$ equity $31,30020,617$ Answer $49$

$-$: Answer $50$

$=$

Total liabilities and stockholders' equity $$68,782$ $$37,250$ Answer $51$

$-$: Answer $52$

$=$

Company X

Income Statement

For Year Ended December $31$ Current Year Prior Year Numerator Denominator Percentage Change

Net sales $$103,444$ $$76,392$ Answer $53$

$-$: Answer $54$

$=$

Cost of goods sold $76,52054,823$ Answer $55$

$-$: Answer $56$

$=$

Gross margins $26,92421,569$ Answer $57$

$-$: Answer $58$

$=$

Operating expenses $22,88618,609$ Answer $59$

$-$: Answer $60$

$=$

Other expenses, gains, losses $(182)1,028$ Answer $61$

$-$: Answer $62$

$=$

Net income $$4,220$ $$1,932$ Answer $63$

$-$: Answer $64$

$=$