4 Balance Sheet 12/312019 5 6 3. Current Ratio Horizontal Analysis 2018 Difference % 4. Inventory Turnover $ 5. Accounts Receivable Turnover 20.000 14.000 20,000 78,000 (24,000) 108,000 6. Profit Margin $ 7 2019 8 Assets S Cash $ 38,000 10 Accounts Receivable 30.000 11 Inventory 27,000 12 Equipment 60,000 13 Accum Deprec - Equipment (29,000) 14 Total Assets $ 126,000 15 16 Liabilities & Stockholders Equity 17 Accounts Payable $ 24,000 18 Income Tax Payable 7 000 19 Bonds Payable 27,000 20 Common Stock 18,000 21 Retained Earnings 50,000 22 Total Liabilities & SH Equity 126,000 23 24 1. Do a Horizontal analysis for above Balance Sheet 25 $ 15,000 8,000 33,000 14.000 38,000 108.000 $ $ 26 27 28 Company A Income Statement Year 2019 Vertical Anal 29 2018 Vertical Analysis 30 31 32 33 Sales Revenue Cost of goods Sold Gross Profit 242,000 175,000 67,000 210.000 160,000 50,000 34 35 Operating Expenses Income From Operations 24 000 43,000 20,000 30,000 36 37 38 39 Interest Expense Net Income Before Tax 3,000 40,000 2,000 28,000 40 41 Income Tax Expense Net Income 8.000 32,000 42 $ 8.000 20,000 $ 43 44 2. Do a vertical analysis for 2018 and 2019 above 45