Horizontal and Vertical Analysis}

Venus Clothing Company specializes in selling apparel for special occasions. In 2017 and 2018, Venus's account balances were as follows:

\section*{Required:}
1. Calculate the change in each of the Venus's accounts from 2017 to 2018.
2. Indicate what happened from 2017 to 2018 to accounts receivable and merchandise inventory as a percentage of total assets. Indicate what happened from 2017 to 2018 to cost of goods sold as a percentage of net sales.
\section*{Brief Exercise

Transcribed Image Text:

2018 2017 Accounts receivable $ 45.000 $ 32,000 Merchandise inventory 9,000 11,000 Total assets 375,000 340,000 Net sales 330,000 260,000 Cost of goods sold 145,000 185,000