Carpet Emporium Comparative Balance Sheet December 31, 2017 and December 31, 2018 Dollar 2018 2017 Change Percent Change Assets: Cash Accounts Receivable Interest Receivable Supplies Land $ 38,500.00 4,200.00 750.00 11,225.00 13,475.00 $ 68,150.00 $ 46,565.00 2,350.00 275.00 13,550.00 13,475.00 $ 76,215.00 Total Assets Liabilities: Accounts Payable Wages Payable Owner's Equity: Suzanne Burns, Capital Total Liabilities & Owner's Equity 7,250.00 975.00 2,000.00 850.00 59,925.00 $ 68,150.00 73,365.00 $ 76,215.00 Carpet Emporium Common-Size Income Statement For the Years Ended December 31, 2017 and December 31, 2018 2017 2018 Dollar Amount 2017 Dollar Amount 2018 Percentage Percentage $ 71,400 $ 42,000 Revenues: Service Revenue Expenses: Rent Expense Wages Expense Advertising Expense Supplies Expense Total Expenses Net Income 20,400 13,200 11,760 9,300 54,660 16,740 20,400 9,000 3,000 3,780 36,180 5,820 Horizontal Analysis Asset Chart Vertical Analysis Financial Ratios 2018 2017 2016 2015 2014 Current Ratio Debt-to-Equity Ratio Profit Margin EA9-E2 Perform a Financial Statement Analysis for Carpet Emporium In this exercise, you will perform a financial statement analysis for Carpet Emporium. You will perform horizontal/vertical analyses and create charts to highlight key information from these analyses. You will also calculate financial ratios, insert cell comments, and create a chart for one set of ratio data. Open EA9-E2-FSA. Complete a horizontal analysis on the 2018 and 2017 balance sheets and a vertical analysis on the 2018 and 2017 income statements. Embed two pie charts beside the income statement-one to display the 2017 expense account percentages and another to display the 2018 expense account percentages. Ensure that each has a chart title, legend, and data labels that are logically displayed. Place a column chart on its own worksheet that displays each 2018 asset account dollar change. Include a chart title and worksheet tab title. Create a new worksheet to calculate the current ratio, debt-to-equity ratio, and profit margin for 2018 and 2017, and assign an appropriate worksheet title. Expand the worksheet to include these ratio results: Ratio 2016 2015 2014 10.65 17.23 67.39 Current Ratio Debt-to-Equity Ratio Profit Margin 0.11 0.10 0.01 0.46 0.19 0.26 Ensure that the ratios are presented logically and that cells are formatted to properly present the data. Enter cell comments for the largest profit margin and smallest debt-to-equity ratio to indicate that further investigation is needed for each. Then add a response to the profit margin comment, appropriately distinguished from the original, indicating that a temporary rent expense reduction was provided by the landlord due to building maintenance issues, and size the comment appropriately. Create line sparklines beside the financial ratios to show the trend in each over the five-year period. Embed a line chart below the financial ratios to display the current ratio for all five years. Include a chart title within the chart. Carpet Emporium Comparative Balance Sheet December 31, 2017 and December 31, 2018 Dollar 2018 2017 Change Percent Change Assets: Cash Accounts Receivable Interest Receivable Supplies Land $ 38,500.00 4,200.00 750.00 11,225.00 13,475.00 $ 68,150.00 $ 46,565.00 2,350.00 275.00 13,550.00 13,475.00 $ 76,215.00 Total Assets Liabilities: Accounts Payable Wages Payable Owner's Equity: Suzanne Burns, Capital Total Liabilities & Owner's Equity 7,250.00 975.00 2,000.00 850.00 59,925.00 $ 68,150.00 73,365.00 $ 76,215.00 Carpet Emporium Common-Size Income Statement For the Years Ended December 31, 2017 and December 31, 2018 2017 2018 Dollar Amount 2017 Dollar Amount 2018 Percentage Percentage $ 71,400 $ 42,000 Revenues: Service Revenue Expenses: Rent Expense Wages Expense Advertising Expense Supplies Expense Total Expenses Net Income 20,400 13,200 11,760 9,300 54,660 16,740 20,400 9,000 3,000 3,780 36,180 5,820 Horizontal Analysis Asset Chart Vertical Analysis Financial Ratios 2018 2017 2016 2015 2014 Current Ratio Debt-to-Equity Ratio Profit Margin EA9-E2 Perform a Financial Statement Analysis for Carpet Emporium In this exercise, you will perform a financial statement analysis for Carpet Emporium. You will perform horizontal/vertical analyses and create charts to highlight key information from these analyses. You will also calculate financial ratios, insert cell comments, and create a chart for one set of ratio data. Open EA9-E2-FSA. Complete a horizontal analysis on the 2018 and 2017 balance sheets and a vertical analysis on the 2018 and 2017 income statements. Embed two pie charts beside the income statement-one to display the 2017 expense account percentages and another to display the 2018 expense account percentages. Ensure that each has a chart title, legend, and data labels that are logically displayed. Place a column chart on its own worksheet that displays each 2018 asset account dollar change. Include a chart title and worksheet tab title. Create a new worksheet to calculate the current ratio, debt-to-equity ratio, and profit margin for 2018 and 2017, and assign an appropriate worksheet title. Expand the worksheet to include these ratio results: Ratio 2016 2015 2014 10.65 17.23 67.39 Current Ratio Debt-to-Equity Ratio Profit Margin 0.11 0.10 0.01 0.46 0.19 0.26 Ensure that the ratios are presented logically and that cells are formatted to properly present the data. Enter cell comments for the largest profit margin and smallest debt-to-equity ratio to indicate that further investigation is needed for each. Then add a response to the profit margin comment, appropriately distinguished from the original, indicating that a temporary rent expense reduction was provided by the landlord due to building maintenance issues, and size the comment appropriately. Create line sparklines beside the financial ratios to show the trend in each over the five-year period. Embed a line chart below the financial ratios to display the current ratio for all five years. Include a chart title within the chart