Question
Can you please help to prepare a horizontal and vertical analysis of the Balance Sheet and the Income Statement. Based on the results of your
Can you please help to prepare a horizontal and vertical analysis of the Balance Sheet and the Income Statement.
Based on the results of your vertical and horizontal analyses, which accounts appear out of alignment? Provide a brief analysis of the relationships between the accounts.
| Statements of Income | |||||
| For the Periods Ending June 30, 20X3, 20X2, and 20X1 | |||||
| (In Thousands) | |||||
| 20X3 | 20X2 | 20X1 | |||
| Sales | $18,848 | $12,445 | $ 8,213 | ||
| Cost of goods sold | 10,598 | 6,833 | 4,523 | ||
| Gross profit | 8,250 | 5,612 | 3,690 | ||
| General and administrative expenses | 967 | 3,366 | 1,889 | ||
| Research and development costs | 149 | 1,335 | 895 | ||
| Income from operations | 7,134 | 911 | 906 | ||
| Net interest expense | 217 | 64 | 161 | ||
| Loss on sale of receivables, factored | - | - | 77 | ||
| Income before income taxes | 6,917 | 847 | 668 | ||
| Provision for income taxes | 2,268 | 556 | 284 | ||
| Net income | $ 4,649 | $ 291 | $ 384 | ||
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
