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

b$.$ Prepare a vertical analysis of the income statement and balance sheet for the the prior year.

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

Company X

Balance Sheet

December $31$ Prior Year Numerator Denominator Prior Year $\%$ of Assets

Assets

Current assets

Cash $$2,646$ Answer $99$

$-$: Answer $100$

$=$

Accounts receivable $3,218$ Answer $101$

$-$:

$0$

$=$

Inventories $6,076$ Answer $102$

$-$:

$0$

$=$

Other current assets $302$ Answer $103$

$-$:

$0$

$=$

Total current assets $12,242$ Answer $104$

$-$:

$0$

$=$

Property, plant, and equipment $12,257$ Answer $105$

$-$:

$0$

$=$

Equity investment $7,336$ Answer $106$

$-$:

$0$

$=$

Intangible assets $1,180$ Answer $107$

$-$:

$0$

$=$

Goodwill $2,359$ Answer $108$

$-$:

$0$

$=$

Other assets $1,876$ Answer $109$

$-$:

$0$

$=$

Total assets $$37,250$ Answer $110$

$-$:

$0$

$=$

Liabilities and Stockholders' Equity

Current liabilities

Short$-$term borrowings $$774$ Answer $111$

$-$:

$0$

$=$

Accounts payable $4,315$ Answer $112$

$-$:

$0$

$=$

Accrued liabilities $3,806$ Answer $113$

$-$:

$0$

$=$

Total current liabilities $8,895$ Answer $114$

$-$:

$0$

$=$

Long$-$term debt $3,716$ Answer $115$

$-$:

$0$

$=$

Other liabilities $4,022$ Answer $116$

$-$:

$0$

$=$

Total liabilities $16,633$ Answer $117$

$-$:

$0$

$=$

Stockholders$$ Equity

Common stock $80$ Answer $118$

$-$:

$0$

$=$

Additional paid$-$in capital $1,172$ Answer $119$

$-$:

$0$

$=$

Accumulated other comprehensive income $136$ Answer $120$

$-$:

$0$

$=$

Retained earnings $22,322$ Answer $121$

$-$:

$0$

$=$

Treasury stock $(3,197)$ Answer $122$

$-$:

$0$

$=$

Noncontrolling interest $104$ Answer $123$

$-$:

$0$

$=$

Total stockholders$$ equity $20,617$ Answer $124$

$-$:

$0$

$=$

Total liabilities and stockholders' equity $$37,250$ Answer $125$

$-$:

$0$

$=$

Company X

Income Statement

For Year Ended December $31$ Prior Year Numerator Denominator Prior Year $\%$ of Net Sales

Net sales $$76,392$ Answer $126$

$-$: Answer $127$

$=$

Cost of goods sold $54,823$ Answer $128$

$-$:

$0$

$=$

Gross margins $21,569$ Answer $129$

$-$:

$0$

$=$

Operating expenses $18,609$ Answer $130$

$-$:

$0$

$=$

Other expenses, gains, losses $1,028$ Answer $131$

$-$:

$0$

$=$

Net income $$1,932$ Answer $132$

$-$:

$0$

$=$