Attached are the Balance Sheet and Income Statement for Wholesale Distributors for the

years 20X7 & 20X8.

Additional Information. Capital Stock Issued and Outstanding 10,000 shares.

This company is offering an additional 5,000 shares of stock at $25 per share

Required:

Perform a Vertical and Horizontal analysis on this company

						Dec 31, 07		Dec 31, 08
ASSETS
	Current Assets
		Checking/Savings
			Company Checking Account			36,857.66		84,444.87
			Company Savings Account			25,000.00		25,000.00
			Petty Cash Account			500.00		500.00
		Total Checking/Savings				62,357.66		109,944.87
		Accounts Receivable
			Accounts Receivable			40,202.50		56,835.69
		Total Accounts Receivable				40,202.50		56,835.69
		Other Current Assets
			Inventory Asset			51,060.47		127,651.18
			Prepaids
				Prepaid Insurance		0.00		0.00
				Prepaid Taxes		800.00		800.00
			Total Prepaids			800.00		800.00
			Security Deposits			1,200.00		1,200.00
		Total Other Current Assets				53,060.47		129,651.18
	Total Current Assets					155,620.63		296,431.74
	Fixed Assets
		Accumulated Depreciation				(923.04)		(1,833.52)
		Automobiles & Trucks				45,632.00		45,632.00
		Computer & Office Equipment				19,453.00		19,453.00
		Machinery & Equipment				25,963.00		25,963.00
	Total Fixed Assets					90,124.96		89,214.48
TOTAL ASSETS						245,745.59		385,646.22
LIABILITIES & EQUITY
	Liabilities
		Current Liabilities
			Accounts Payable
				Accounts Payable		3,990.80		5,986.20
			Total Accounts Payable			3,990.80		5,986.20
			Credit Cards
				QuickBooks Credit Card		1,249.12		1,300.00
			Total Credit Cards			1,249.12		1,300.00
			Other Current Liabilities
				Line of Credit		104,618.08		136,003.50
				Payroll Liabilities
					Payroll Taxes Payable	1,565.31		1,612.27
					SEC125 Payable	100.00		100.00
				Total Payroll Liabilities		1,665.31		1,712.27
			Total Other Current Liabilities			106,283.39		137,715.77
		Total Current Liabilities				111,523.31		145,001.97
	Total Liabilities					111,523.31		145,001.97
	Equity
		Common Stock				10,000.00		10,000.00
		Additional Paid in Capital				33,949.80		33,949.80
		Retained Earnings				0.00		90,272.48
		Net Income				90,272.48		106,421.96
	Total Equity					134,222.28		240,644.24
TOTAL LIABILITIES & EQUITY						245,745.59		385,646.21
						0.00		(0.00)

						Jan - Dec 07		Jan - Dec 08
	Ordinary Income/Expense
			Income
				Revenue		372,951.45		410,246.60
			Total Income			372,951.45		410,246.60
			Cost of Goods Sold
				Direct Labor
					Wages - Warehouse	18,630.00		19,188.90
				Total Direct Labor		18,630.00		19,188.90
				Freight Costs		1,810.00		1,918.60
				Packaging Materials		1,752.50		1,875.18
				Purchases (Cost of Goods)		161,945.83		171,662.58
				Sales Commission (outside reps)		3,990.80		8,204.93
			Total COGS			188,129.13		202,850.19
		Gross Profit				184,822.32		207,396.41
			Expense
				Advertising Expense		2,000.00		2,600.00
				Business License & Fees		710.23		710.23
				Car/Truck Expense
					Car Lease	6,756.00		6,756.00
					Gas	907.64		1,361.46
					Insurance-Auto	1,440.00		1,440.00
					Registration & License	546.00		546.00
					Repairs & Maintenance	1,700.23		2,500.00
				Total Car/Truck Expense		11,349.87		12,603.46
				Conferences and Seminars		4,700.00		5,000.00
				Contributions		2,500.00		2,000.00
				Depreciation Expense		923.04		910.48
				Dues and Subscriptions		1,900.00		1,900.00
				Insurance
					General Liability Insurance	2,760.00		2,760.00
					Owner's Health Insurance	4,272.00		4,336.08
					Professional Liability Insuranc	6,875.00		6,875.00
					Worker's Compensation	2,782.08		2,782.08
				Total Insurance		16,689.08		16,753.16
				Maintenance/Janitorial		2,841.95		3,000.00
				Marketing Expense		4,982.00		5,500.00
				Meals		1,376.35		2,000.00
				Office Equipment		1,100.00		1,500.00
				Postage and Delivery		1,098.00		1,300.00
				Professional Fees
					Accounting Fees	2,544.00		3,000.00
					Legal Fees	600.00		500.00
					Payroll Service Fees	1,529.24		2,000.00
				Total Professional Fees		4,673.24		5,500.00
				Promotional Expense		2,021.00		2,000.00
				Rent		7,005.00		7,005.00
				Repairs
					Computer Repairs	390.00		500.00
				Total Repairs		390.00		500.00
				Supplies		6,199.36		7,000.00
				Telephone		4,003.44		4,500.00
				Travel & Entertainment
					Travel	3,452.23		4,000.00
				Total Travel & Entertainment		3,452.23		4,000.00
				Utilities		501.59
				Wages
					Employee Benefits	2,253.96		2,321.58
					Payroll Tax Expenses	3,751.05		3,863.58
					Sick/Holiday & Vacation Pay	0.00		0.00
					Wages - Office Staff	5,832.00		6,006.96
				Total Wages		11,837.01		12,192.12
			Total Expense			92,253.39		98,474.45
	Net Ordinary Income					92,568.93		108,921.96
	Other Income/Expense
		Other Expense
			Other Expense
				Interest Expense		2,296.45		2,500.00
			Total Other Expense			2,296.45		2,500.00
		Total Other Expense				2,296.45		2,500.00
	Net Other Income					-2,296.45		-2,500.00
Net Income						90,272.48		106,421.96