1. Use the Condensed Balance Sheet below for Questions 1 and 2.

When preparing a horizontal analysis, what would the percentage of change be for total assets?

a.9.6% b 4.8% c 39.9% d 20.6%

2.

Using the Balance Sheet from Question 1, a vertical analysis of the balance sheet for 2012 would show a percentage figure for accounts receivable equal to:

47.0% 100.0% 8.0% 19.0%

Desert View Company Balance Sheet March 31 2012 2011 Assets Cash Accounts receivable Inventory Property, plant & equipment Total assets Liabilities and Shareholders Equity Accounts payable Long-term liabilities Shareholders' equity Total liabilities and shareholders equity $60,000 $56,000 $142,500 $136,000 $195,000 $178,000 $352,500 $252,o00 750,000 $622,000 $127,500 S160,000 $150,o00 $472,500 $462,000 $750,000 $622,000