60 285 100 110 90 Cash 2020 2021 25 30 Accounts Receivable, Net 55 60 Inventory 40 Property, plant and Equipment, net 140 155 Total Assets 280 Accounts Payable 50 60 Mortgage Payable Common Stock, par $10 90 Retained Earnings 10 25 Total Liabilities and Owners' Equity 280 285 Sales for the year $150 Cost of Goods Sold 80 Net Income for the year 45 Using the information above, answer the following questions. 1. Using vertical analysis, what percentage is Property Plant and Equipment for year 2020? Show work. A. 34.23 % B. 35.7196 C. 54.39% D. 36.71% lot 245 280 2. Using horizontal analysis, what is the change in accounts receivable? Show work A. 10% increase B. 10% decrease C. 8.33% increase D. 8.33% decrease 3. Calculate the Inventory Turnover. Show work A. 1.6 times B. 1.6% C. 1.33 times D. 1.33 % 4. Calculate the earnings per share. Show work. A. $3.00 B. $5.00 C. $8.00 D. $9.00 5. Calculate the current ratio for 2021. Show work. A. 2.50 B. 2.80 C. 2.41 D. 2.25 6. In horizontal analysis, the current year is the base year. A. True B. False 7. On a common-sized income statement all items are stated as a percent of total Assets or Equities at year-end. A. True B. False 8. The relationship of each asset item as a percent of total assets is an example of vertical analysis. A. True B. False 9. The excess of current assets over current liabilities is referred to as working capital A. True B. False 10. Solvency analysis focuses on the ability of a business to pay its current and noncurrent liabilities. A. True B. False