December 31, 2014 December 31, 2013

Current assets $140,000 $110,000

Plant assets (net) 440,000 360,000

Current liabilities 95,000 75,000

Long-term liabilities 165,000 100,000

Common stock, $1 par 180,000 120,000

Retained earnings 140,000 175,000

Instructions:

(a) Prepare a schedule showing a horizontal analysis for 2014 using 2013 as the base year.

(b) What is the primary use of horizontal analysis?

(c) What does the schedule from part (a) tell you about Nealon?