Balance Sheet:

Income Statement:

For the following questions, use the data from the Financial Statements. 1. The 2019 Vertical Analysis percentage for Buildings is: A. 90.5% B. 66.5% C. 62.6% D. 100% 2. The 2019 Vertical Analysis percentage for Bonds Payable is: A. 33.5% B. 55.3% C. 84.9% D. 100% 3. Year-over-year Dollar Change for Income Tax Payable is a positive value. TRUE FALSE 4. Year-over-year percentage change for Retained Earnings is: A. 12.2% B. 13.9% C. 27.8% D. 36.5% 5. Net Profit Margin for 2019 is: A. 30% B. 5.0% C. 3.4% D. 2.2% 6. Return on Assets for 2019 is: A. 5.16% B. 5.31% C. 5.48% D. 14.22% 7. For every dollar in Average Total Assets, how much sales is generated by the company in 2019? A. $0.48 B. $1.54 C. $1.59 D. $1.63 Comparative Balance Sheets 2018 and 2019 Assets At 12-31-2019 Vertical analysis 2019 At 12-31-2018 Dollar change Horizontal analysis change Current Assets Cash & cash equilents Accounts Recivable Inventory Other current Assets Total Current assets Long Term assets(Non current) 8,150.00 43,800.00 81,320.00 18,150.00 151,420.00 1.66 8.92 16.56 3.70 30.83 7,220.00 46,600.00 78,100.00 18,200.00 150,120.00 930.00 (2,800.00) 3,220.00 (50.00) 1,300.00 11.41 (6.39) 3.96 (0.28) 0.86 2.76 Property plant & Equipment Land Bulding Fixtures.computer equipments Construction in progress Accumulated depreciation Total pp & E Other non current assets Total Long term assets Total Assets 58,000.00 307,560.00 84,500.00 11,130.00 (136,000.00) 325,190.00 14,500.00 339,690.00 491,110.00 11.81 62.63 17.21 2.27 (27.69) 66.22 2.95 69.17 100.00 56,400.00 284,880.00 80,300.00 11,800.00 (132,400.00) 3 00,980.00 11,220.00 312,200.00 462,320.00 1.600.00 22.680.00 4,200.00 (670.00) (3,600.00) 24,210.00 3,280.00 27,490.00 28,790.00 7.37 4.97 (6.02) 2.65 7.44 22.62 8.09 5.86 Liablities Current Liablities Accounts Payable Salaries payable Intrest payable Income tax payable Total current liablities Long Term liablities Bonds Payable Total Liablities 69,850.00 36,500.00 14,000.00 12,500.00 132,850.00 14.22 7.43 2.85 2.55 27.05 68,300.00 37,500.00 14,350.00 12,850.00 133,000.00 1,550.00 (1,000.00) (350.00) (350,00) (150.00) 2.22 (2.74) (2.50) (2.80) (0.11) 164,490.00 297,340.00 33.49 60.54 166,700.00 299,700.00 (2,210.00) (2,360.00) (1.34) (0.79) Share Holders Equity Common stock 540.00 0.11 580.00 (40.00) (7.41) APIC 54,700.00 11.14 39,250.00 15,450.00 28.24 Retained Earnings 146,460.00 29.821 128,550.00 17,910.00 12.23 Accum other comprehensive loss (7,930.00) (1.61) (5,760.00 (2,170.00) 27.36 Total share holders fiablity 193,770.00 39.46 162,620.00 31,150.00 16.08 Total liablities & share holders equity 491,110.00 100.00 462,320.00 2 8,790.00 5.86 Note: For vertical analysis each line item of the balance sheet is divided by the total assets or total liabilities total and multiplied by 100 to get the %. For horizontal analysis, the difference between the current year and the previous year is divided by the previous year and multiplied by 100 to get the % Answer: 2019 Vertical analysis 2018 $ change % change Sales $ 755,800 100.00% $ 734,750 $ 21,050 2.86% Cost of sales $ 529,000 69.99% $ 521,670 $ 7,330 1.41% Gross profit $ 226,800 30.01% $ 213,080 $13,720 6.44% Operating expenses Selling and admin expenses $ 158,750| 21.00% $ 149,600 $ 9,150 6.12% Credit card expenses $ 4,800| 0.64%$ 4,670 $ 130 2.78% Depreciation expense $ 25,230| 3.34%$ 21,420 $ 3,810 17.79% Total operating expenses $ 188,780 24.98% $ 175,690 $13,090 7.45% Operating Income $ 38,020 5.03% $ 37,390 $ 630 1.68% Interest expense $ 5,950| 0.79% $ 6,001 $ (51) -0.85% $ 32,070 4.24%$ 31,389 $ 681 2.17% Income tax expense $ 6,735 0.89% $ 6,592 $ 143 2.17% Net Income $ 25,335 3.35%$ 24,797 $ 538 2.17% In case of any doubt or clarification, feel free to come back via comments