1. Directions: Imagine yourselves as a business owners. Make your own statement of financial position and statement of comprehensive income for calendar year 2019 and 2021. Afterwards, perform a horizontal and vertical analysis for each report.

Locke Dawne Trading Income Statement For the Years Ended December 31 in millions Increase (Decrease) 2019 2018 Amount Percent Net Sales 4,972 4,150 Cost of Goods Sold 3,046 2,444 Gross Profit 1,926 1,706 Selling & Administrative Expenses 1,556 1,500 Operating Income 370 206 Interest Expense 88 92 Income before Income Taxes 282 114 Income Tax Expense 94 42 NetIncome 188 72Next in Line a. Perform a horizontal analysis for 2018 and 2019 of Parz Trading Increase (Decrease) 2019 2018 Amount Percent Net Sales 450,000 375,000 Cost of Goods Sold 315,000 300,000 Gross Profit 135,000 75, 000 Operating Expenses 101,250 60,000 Net Income 33, 750 15,000 b. Beform a vertical analysis for 2018 and 2019 of Rodel Trading. 2019 Percent 2018 Percent Current Assets 210,000 180,000 Property, Plant, and Equipment 420,000 250,000 Total Assets 630,000 430,000 Current Liabilities 90,000 100,000 Non-Current Liabilities 250,000 150,000 Total Liabilities 340,000 250,000 Owner's Equity 290,000 180,000 Total Liabilities and Owner's Equity 630,000 430,000Locke Dawne Trading Statement of Financial Position As of December 31 Assets 2019 2018 Increase ( Decrease) Amount Percent Current Assets Cash 158,000 84,000 Short-term Investments 130,000 192,000 Accounts Receivable, Net 240,000 200,000 Merchandise Inventory 500,000 530,000 Total Current Assets 1,028,000 1,006,000 Property, Plant, & Equipment (net) 2,340,000 2,350,000 Total Assets 3,368,000 3,356,000 Liabilities & Owner's Equity Current Liabilities 530,000 584,000 Non-Current Liabilities 800,000 840,000 Total Liabilities 1,330,000 1,424,000 Owner's Equity 2,038,000 1,932,000 Total Liabilities & Owner's Equity 3,368,000 3,356,000Locke Dawne Trading Statement of Financial Position As of December 31 Assets 2019 Percent 2018 Percent Current Assets Cash 158,000 84,000 Short-term Investments 130,000 192,000 Accounts Receivable, Net 240,000 200,000 Merchandise Inventory 500,000 530,000 Total Current Assets 1,028,000 1,006,000 Property, Plant, & Equipment (net) 2,340,000 2,350,000 Total Assets 3,368,000 3,356,000 Liabilities & Owner's Equity Current Liabilities 530,000 584,000 Non-Current Liabilities 800,000 840,000 Total Liabilities 1,330,000 1,424,000 Owner's Equity 2,038,000 1,932,000 Total Liabilities & Owner's Equity 3,368,000 3,356,000Locke Dawne Trading Income Statement For the Years Ended December 31 (in millions) 2019 Percent 2018 Percent Net Sales 4,972 4,150 Cost of Goods Sold 3,046 2,444 Gross Profit 1,926 1,706 Selling & Administrative Expenses 1,556 1,500 Operating Income 370 206 Interest Expense 88 92 Income before Income Taxes 282 114 Income Tax Expense 94 42 Net Income 188 72