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2018 Vertical (a) Complete the Horizontal & Vertical Analysis on the Balance Sheet Below: December Horizontal Analysis Balance Sheet 2018 2017 $ Change % Change

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2018 Vertical (a) Complete the Horizontal & Vertical Analysis on the Balance Sheet Below: December Horizontal Analysis Balance Sheet 2018 2017 $ Change % Change Cash $ 24,000 $ 33,000 Accounts Receivable $ 25,000 $ 14,000 Inventory $ 41,000 $ 25,000 Equipment $ 70,000 $ 78,000 Accum Deprec-Equipment $ (27,000) $ (24.000) Total $ 133.000 $ 126.000 Accounts Payable Income Tax Payable Bonds Payable Common Stock ($5 par) Retained Earnings Total $ IS $ $ $ $ 31,000 24,000 20,000 25,000 33.000 133.000 $ $ $ $ $ S 43,000 20,000 10,000 25,000 28,000 126.000 (b) Complete the Vertical Analysis on the Income Statement Below: YE December 31, 2018 Vertical Analysis Sales S 286,000 Cost of goods sold S (204,000) Gross profit 82,000 Depreciation expense S (8,000) Other operating expenses S (29,000) Income from operations S 45,000 Interest expense S (7.000) S Interest expense Income before income taxes Income tax expense Net income $ $ $ (7,000) 38,000 (10,000) 28,000 Additional information: 1. In 2018, declared and paid a $23,000 cash dividend. 2. Purchased equipment for cash, $7,000. 3. Sold equipment with book value of $10,000 (cost $15,000, less accumulated depreciation $5,000) for $10,000 cash. 4. All sales and purchases are on account. 5. No additional common stock issues. Market at 12-31-18 is $8. (c) Using the Cuddle Bear Company information above, compute the list of items given a. Working Capital b. Current Ratio (c) Using the Cuddle Bear Company information above, compute the list of items given a. Working Capital b. Current Ratio c. Quick Ratio d. Accounts Receivable turnover (assume all sales are credit sales) e. Days' Sales Outstanding f. Inventory Turnover g. Days' Sales in Inventory h. Gross Profit Margin i. Net Profit Margin j. Asset Turnover k. Return on Assets 1. Return on Common Stockholders' Equity 1. Return on Common Stockholders' Equity m.Return on Equity n. Earnings per Share o. Price-Earnings Ratio p. Dividend Yield q. Book Value per Common Share r. Debt-to-Total Assets Ratio r. Debt-to-Total Assets Ratio s. Times Interest-Earned t. Debt-to-Equity Ratio

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