a) Complete Horizontal Analysis for the Asset portion of this Balance Sheet 2016 2015 $ Change Change Cash $150 $75 Receivables 150 125 Inventory 60,000 80,000 Land 250,000 250,000 Buildings 245,000 250,000 Equipment 198,000 180,000 Total Assets $753,300 $760,200 b) Complete Vertical Analysis for the Income Statement 2016 of Sales Net Sales $200,000 Cost of Goods Sold 120,000 Gross profit margin 80,000 G A expenses 20,000 Operating income 60,000 Interest expense 5,000 Earn before taxes 55,000 Income taxes (30 ) 16,500 Net earnings $38,500 c) Compute the Inventory Turnover ratio Cost of Goods Sold Inventory (text uses ending inventory $) Turnover Ratio d) Compute days sales in inventory 365 (days in year) Inv' turn ratio (from above) Days sales in Inv

Question

a) Complete Horizontal Analysis for the Asset portion of this Balance Sheet    2016 2015 $ Change Change Cash $150 $75 Receivables 150 125 Inventory 60,000 80,000 Land 250,000 250,000 Buildings 245,000 250,000 Equipment 198,000 180,000 Total Assets $753,300 $760,200 b) Complete Vertical Analysis for the Income Statement  2016   of Sales Net Sales $200,000 Cost of Goods Sold 120,000 Gross profit margin 80,000 G A expenses 20,000 Operating income 60,000 Interest expense 5,000 Earn before taxes 55,000 Income taxes (30 ) 16,500 Net earnings $38,500 c) Compute the Inventory Turnover ratio  Cost of Goods Sold   Inventory (text uses ending inventory $)   Turnover Ratio d) Compute days sales in inventory 365 (days in year)   Inv' turn ratio (from above)   Days sales in Inv

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a) Complete Horizontal Analysis for the Asset portion of this Balance Sheet: % 2016 2015 $ Change Change Cash $150 $75 Receivables 150 125 Inventory

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a) Complete Horizontal Analysis for the Asset portion of this Balance Sheet:				%
	2016	2015	$ Change	Change
Cash	$150	$75
Receivables	150	125
Inventory	60,000	80,000
Land	250,000	250,000
Buildings	245,000	250,000
Equipment	198,000	180,000
Total Assets	$753,300	$760,200

b) Complete Vertical Analysis for the Income Statement:
	2016	% of Sales
Net Sales	$200,000
Cost of Goods Sold	120,000
Gross profit margin	80,000
G&A expenses	20,000
Operating income	60,000
Interest expense	5,000
Earn before taxes	55,000
Income taxes (30%)	16,500
Net earnings	$38,500

c) Compute the Inventory Turnover ratio:
Cost of Goods Sold
/ Inventory			(text uses ending inventory $)
= Turnover Ratio

d) Compute days sales in inventory
365 (days in year)
/ Inv' turn ratio		(from above)
= Days sales in Inv