a prepare the 2018 and 2019 common sized balance sheets b prepare the 2018 and 2019 common sized income statements c using 2018 as the base year, perform a horizontal analysis on the balance sheets d using 2018 as the base year, perform a horizontal analysis on the income statements e what do you observe? are there any interesting trends or changes?

Be Copy - te Format Painter BIU- - A Es Merge & Center - $ - % .00 000 Neutral Calculatio Conditional Format as Good Formatting Table Clipboard Font Alignment Number Styles 8 f A J KL M N 0 B D E F G H 1 Assignment 3.4 Exercises Problem 9: Financial Statement Analysis 10 Points Use the financial information provided below to perform both a vertical and horizontal analysis of French Corp. 10 11 12 13 14 15 16 17 18 Item 2018 2019 Cash $ 150,000 $ 85,000 Accounts Receivable $ 580,000 $ 630,000 Inventory $ 360,000 $ 430,000 Accounts Payable $ 410,000 $ 625,000 Net Plant and Equipment $1,250,000 $1,490,000 Long-Term Debt $1,470,000 $1,530,000 Common Stock and Paid-in Surplus $ 400,000 $400,000 Retained Earnings $ 60,000 $ 80,000 Net Sales $2,150,000 $2,550,000 Cost of Goods Sold $1,350,000 $1,590,000 Operating Expenses $ 125,000 $ 165,000 Depreciation Expense $ 240,000 $ 250,000 Management Salaries $ 220,000 $ 330,000 Interest $ 140,000 $ 165,000 Income Tax $ 15,500 $ 13,500 a) Prepare the 2018 and 2019 common-sized Balance Sheets b) Prepare the 2018 and 2019 common-sized Income Statements. C) Using 2018 as the base year, perform a horizontal analysis on the Balance Sheets d) Using 2018 as the base year, perform a horizontal analysis on the Income Statements E) What do you observe? Are there any interesting trends or changes? (answer with a few sentences) Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers. 19 20 21 22 23 24 25 LU 27 28 29 30 31 32 33 34 35 36