1.Horizontal Analysis

The comparative temporary investments and inventory balances of a company follow.

Current Year Previous Year

Temporary investments $44,000$40,000

Inventory 57,000 60,000

Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis?

Change in Amount Increase/Decrease Percentage

Temporary investments

Inventory

2.Vertical Analysis

Using the income statement information for Omega Corporation that follows, I must prepare a vertical analysis of the income statement for Omega Corporation. If required, round percentages to one decimal place. Percentage sign will appear automatically.

Omega Corporation

Income Statement

1AmountPercentage

2Sales$710,000.00

3 Cost of goods sold482,800.00

4Gross profit$227,200.00

3.Vertical Analysis

Using the income statement information for Omega Corporation that follows, I must prepare a vertical analysis of the income statement for Omega Corporation. If required, round percentages to one decimal place. Percentage sign will appear automatically.

Omega Corporation

Income Statement

1AmountPercentage

2Sales$500,000.00

3Cost of goods sold300,000.00

4Gross profit$200,000.00

4.Horizontal Analysis

The comparative temporary investments and inventory balances of a company follow.

Current Year Previous Year

Accounts payable $64,400 $57,500

Long-term debt 40,020 43,500

Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis?

Amount of Change Increase/Decrease Percentage

Accounts payable

Long-term debt

5.Current Position Analysis

The following items are reported on a company's balance sheet:

Cash $322,400

Marketable securities 251,900

Accounts receivable (net) 231,700

Inventory 201,500

Accounts payable 403,000

Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

a. Current ratio

b. Quick ratio