cost Instructions Using horizontal analysis and of goods sold, and 2011 as the base year, compute the trend percentages for net sales, eross profit. Explain whether the trends are favorable or unfavorable for each item. Ex. 196 The comparative balance sheet of Hale Company appears HALE COMPANY Comparative Balance Sheet December 31, 2013 2012 300 Assets Current assets Plant assets $ 360 500 Total assets 1.0005800 Liabilities and stockholders' equity Current liabilities Long-term debt Common stock Retained earnings 150$120 160 280 240 240 350 Total liabilities and stockholders' equity $1.000 800 Instructions Using horizontal analysis,show the percentage change for each balance sheet item using 2012 asa base year (a) (b) Using vertical analysis, prepare a common size comparative balance sheet. Ex. 197 Using the following selected items from the comparative balance sheet of Ames Company, illustrate horizontal and vertical analysis. December 31, 2013 Accounts Receivable Inventory Total Assets December 31, 2012 600,000 780,000 2,500,000 $960,000 975,000 4,000,000