#2 TREND ANALYSIS 10 points (Horizontal Analysis)

OPTIONAL ADDITIONAL 2 POINTS This is your company. Based on the results of this horizontal analysis, what problems do you see? Which department heads might you want to talk with (and about what)?

INSTRUCTIONS: Perform a TREND ANALYSIS (Horizontal Analysis) given the following information: Your answer goes here INCOME STATEMENT 12/31/2023 12/31/2022 Increase or Decrease Amount % Sales 2,200 1,800 Cost of goods sold 900 800 GROSS PROFIT 1,300 1,000 Selling expenses 400 250 Administrative expenses 230 210 TOTAL OPERATING EXPENSES 630 460 Income before tax 670 540 Income tax expense 201 162 Net Income 469 378 #3 VERTICAL ANALYSIS 10 points INSTRUCTIONS: Given the following information, perform a VERTICAL ANALYSIS INCOME STATEMENT 12/31/2023 Your answer goes here Sales 600 Cost of goods sold 240 GROSS PROFIT 360 Selling expenses 130 Administrative expenses 90 TOTAL OPERATING EXPENSES 220 Income before tax 140 Income tax expense 42 NET INCOME 98 - #4 VERTICAL ANALYSIS 10 points INSTRUCTIONS: Given the following information, perform a VERTICAL ANALYSIS 12/31/2023 BALANCE SHEET Your answer goes here Current Assets 300 Plant Assets, net 1,000 Total Assets 1,300 Current Liabilities 200 Long Term Liabilities 300 Total Liabilities 500 Common Stock, $1 par 600 Retained Earnings 200 Total Stockholders' Equity 800 Total Liabilities & 1,300 Stockholders' Equity