The following condensed financial information is a Prepare horizontal analysis available for the Micro Brewery Inc.

Instructions
(a) Using horizontal analysis, calculate the percentage of the base-year amount for the income statement and
balance sheet, assuming 2011 is the base year.
(b) Using the horizontal analyses you prepared in (a), identify any significant changes between 2011 and 2014.
(c) Is it possible to prepare a meaningful horizontal analysis of the percentage change for each year for Micro Brewery? Explain.
Taking It Further
Micro Brewery's financial information for 2014 and 2013 was prepared using IFRS, which the company converted to when it became a publicly-traded company on January 1, 2013. The financial information for 2012 and 2011 was prepared using ASPE, the accounting standards the company used prior to 2013. How might these differing standards affect your interpretation of the horizontal analysis?

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MICRO BREWERY INC. Income Statement Year Ended December 31 2014 $551,830 263,850 287,980 204,550 83,430 2013 $451,300 207,350 243,950 202,620 41,330 2012 $462,320 202,160 260,160 191,800 2011 Sales revenue Cost of goods sold Gross profit Operating expenses Profit from operations Other income (expenses) Profit before income taxes Income tax expense $376,330 149,050 227,280 185,230 42,050 2,200 44,250 7,523 36,727 1,470 2,170 84,900 14,433 $70,467 3,040 71,400 12,138 $59,262 7,395 36,105 MICRO BREWERY INC. Balance Sheet December 31 2012 Assets Current assets Non-current assets 2014 2013 2011 $ 90,890 69,060 $ 79,830 66,830 416,870 438,810 277,552 292,160 $507,760 $507,870 $357,382 $358,990 Total assets Liabilities Current liabilities Non-current liabilities Total liabilities 45,750 43,220 37,250 46,750 52,280 99,030 59,323 26,216 71,966 102,543 20,910 58,160 Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 10,000 325,794295,328 289,222 249,960 435,794405,327 299,222 259,960 $358,990 10,000 110,000 10,000 $507,760 $507,870 $357,382