The statement of financial position for Jai’s Jeans Ltd is presented below.

Required

(a) Prepare a horizontal analysis of the statement of financial position data for Jai’s Jeans Ltd using 2016 as a base.

(b) Prepare a vertical analysis for Jai’s Jeans Ltd for 2017 and 2016. 

(c) If you were deciding whether to invest in this business, which analysis would you find more useful? Provide reasons for your answer.

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JAI'S JEANS LTD Partial statement of financial position as at 30 June 2017 Assets Current assets Property, plant and equipment (net) Intangibles Total assets Liabilities and equity Current liabilities Non-current liabilities Equity Total liabilities and equity 2017 $ 27.000 951 000 56 000 $1034000 $ 45.000 320 000 669 000 $1034000 2016 $ 36000 862 000 52000 $950 000 $ 50000 311000 589 000 $950 000