This concludes the accounting for Sensations Salon, Inc., that we began in Chapter 1. For this exercise,

Question:

This concludes the accounting for Sensations Salon, Inc., that we began in Chapter 1. For this exercise, refer to the comparative balance sheet presented in the Continuing Exercise in Chapter 11.

Requirements

1. Prepare a horizontal analysis of the balance sheet for Sensations Salon, Inc. Round percentages to one-tenth of a percent.

2. Prepare a vertical analysis of the balance sheet for Sensations Salon, Inc. Round percentages to one-tenth of a percent.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...