Question: Using the following selected items from the comparative balance sheet of Carla Vista Company, illustrate horizontal (using 2020 as the base year) and vertical analysis.

Using the following selected items from the comparative balance sheet of Carla Vista Company, illustrate horizontal (using 2020 as the base year) and vertical analysis. (Round vertical analysis to 1 decimal place, e.g. 15.2.)

HORIZONTAL ANALYSIS

VERTICAL ANALYSIS

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Accounts Receivable

$728,670 $641,130 enter percentages % enter percentages % enter percentages rounded to 1 decimal place % enter percentages rounded to 1 decimal place %

Inventory

459,030 382,270 enter percentages % enter percentages % enter percentages rounded to 1 decimal place % enter percentages rounded to 1 decimal place %

Total Assets

3,210,000 3,010,000 enter percentages % enter percentages % enter percentages rounded to 1 decimal place % enter percentages rounded to 1 decimal place %

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