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Discuss significant changes that have occurred in the vertical analysis and horizontal analysis. Following are the analysis completed: Balance Sheet Vertical Analysis Balance Sheet Vertical
Discuss significant changes that have occurred in the vertical analysis and horizontal analysis.
Following are the analysis completed:
| Balance Sheet | Vertical Analysis | Balance Sheet | Vertical Analysis | Horizontal Analysis | |
| Last day year 1 | Last day year 1 | Last day year 2 | Last day year 2 | last day years 1 & 2 | |
| Assets | |||||
| Current Assets: | |||||
| Cash | $ 45,750.00 | 71.43% | $ 64,255.00 | 85.16% | 140.45% |
| Accounts Receivable | $ 2,000.00 | 3.12% | $ - | 0.00% | 0.00% |
| Inventory | $ 700.00 | 1.09% | $ 100.00 | 0.13% | 14.29% |
| Supplies | $ 5,000.00 | 7.81% | $ 4,000.00 | 5.30% | 80.00% |
| Prepaid Rent | $ 6,100.00 | 9.52% | $ 3,100.00 | 4.11% | 50.82% |
| Total Current Assets | $ 59,550 | 92.97% | $ 71,455 | 94.70% | |
| PP&E: | 0.00% | 0.00% | |||
| Equipment | $ 5,000.00 | 7.81% | $ 5,000.00 | 6.63% | 100.00% |
| Accumulated Depreciation | $ (500.00) | -0.78% | $ (1,000.00) | -1.33% | 200.00% |
| Total PP&E | $ 4,500 | 7.03% | $ 4,000 | 5.30% | 88.89% |
| Total Assets | $ 64,050 | 100.00% | $ 75,455 | 100.00% | 117.81% |
| Liabilities | |||||
| Current Liabilities: | |||||
| Accounts Payable | $ 4,500.00 | 7.03% | $ 8,000.00 | 10.60% | 177.78% |
| Interest Payable | $ 100.00 | 0.16% | $ 100.00 | 0.13% | 100.00% |
| Income Taxes Payable | $ 545.00 | 0.85% | $ 845.00 | 1.12% | 155.05% |
| Total Current Liabilities | $ 5,145 | 8.03% | $ 8,945 | 11.85% | 173.86% |
| LTD: | 0.00% | 0.00% | |||
| Notes Payable | $ 2,000 | 3.12% | $ 2,000 | 2.65% | 100.00% |
| Total Liabilities | $ 7,145 | 11.16% | $ 10,945 | 14.51% | 153.18% |
| Owners' Equity | 0.00% | 0.00% | |||
| Stock | $ 55,000 | 85.87% | $ 55,000.00 | 72.89% | 100.00% |
| Retained Earnings | $ 1,905 | 2.97% | $ 9,510.00 | 12.60% | 499.21% |
| Total Owners' Equity | $ 56,905 | 88.84% | $ 64,510 | 85.49% | 113.36% |
| Total Liabilities & Owners' Equity | $ 64,050 | 100.00% | $ 75,455 | 100.00% | 117.81% |
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