The abridged accounts for N.O. Hope pic are given below.

1. Retained earnings were after taking dividends of £46,000 for 2004 and £45,000 for 2005 into account.
Required: Prepare a horizontal and vertical analysis. Highlight three figures that may need further enquiry.

Transcribed Image Text:

Income Statements Sales Cost of Sales 2004 2005 000 000 400 440 (300) (330) Gross Profit 100 110 Administrative expenses Distribution expenses (15) (25) Profit before Taxation Taxation Profit for Year (5) (10) 80 75 (16) (15) 64 60 Balance Sheets ASSETS Non-current Assets 000 000 Property, plant and equipment 120 235 Intangible assets 20 20 Total non-current assets 140 255 Current Assets Inventory Trade receivables Bank Total Assets 80 40 40 20 20 10 140 70 280 325