1. Apply the trend analysis (horizontal) and common size analysis (vertical) on the financial statements and analyze your answer. a. Trend Analysis (horizontal) Golden Services Company Comparative Statements of Financial Position December 31 Increase or (Decrease) during 2017 2019 2018 Amount Persent Assets Property, plant and equipment (net) Inventory AED 260,000 50,000 AED 300,000 (40,000) (13.33%) 70,000 (20,000) (28.57%) Accounts receivable (net) 50,000 30,000 20,000 66.67% Short-term investments 15,000 60,000 (45,000) (75.00%) Cash 25,000 40,000 (15,000) (37.50%) Total assets AED 400,000 AED 500,000 (100,000) (20.00%) Equity and liabilities Share capital-ordinary AED 150,000 AED 150,00 0 0.00% Retained eamings Bonds payable 110,000 70,000 40,000 57.14% 80,000 160,000 (80,000) (50.00%) Accounts payable 20,000 30,000- (10,000) (33.33%) Short-term notes payable 40,000 90,000 (50,000) (55.56%) Total equity and liabilities AED 400,00 AED 500,000 (100,000) (20.00%) b. Size Analysis (Vertical) Golden Services Company Comparative Statements of Financial Position December 31 2019 Amount Percent Amount 2018 Percent Assets Property, plant and equipment (net) Inventory Accounts receivable (net) Short-term investments Cash Total assets Equity and liabilities Share capital-ordinary Retained eamings Bonds payable Accounts payable AED 260,000 65% AED 300,000 60% 50,000 12% 70,000 14% 50,000 12% 30,000 6% 15,000 4% 60,000 12% 25,000 6% 40,000 8% AED 400,00 100% AED 500,000 100% AED 150,000 38% AED 150,000 30% 110,000 28% 70,000 14% 80,000 20% 160,000 32% 20,000 5% 30,000 6% Short-term notes payable 40,000 10% 90,000 18% Total equity and liabilities AED 400,000 100% AED 500,000 100%