EX 14-1 Vertical analysis of income statement Obj. 2 a. Current year net revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: income: $360,000; 99 of sales Current Year Previous Year Sales $4,000,000 $3,600,000 Cost of goods sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 SHOW ME HOW Administrative expenses 520,000 360,000 Income tax expense 240,000 216,000 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage. b. Comment on the significant changes disclosed by the comparative income statement. Cash EX 14-6 Current position analysis Obj. 3 a. (1) Current year The following data were taken from the balance sheet of Nilo Company at the end of two recent working capital, fiscal years: $1,090,000 Current Year Previous Year Current assets: $ 391,000 $ 300,000 SHOW ME HOW Marketable securities 515,000 354,000 Accounts and notes receivable (net) 634,000 426,000 Inventories 368,000 222,000 Prepaid expenses 182,000 138,000 Total current assets $ 2,090,000 $1,440,000 Current liabilities: Accounts and notes payable (short-term) $ 725,000 $ 600,000 Accrued liabilities 275,000 300,000 Total current liabilities $1.000.000 $ 900,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. b. What conclusions can be drawn from these data as to the company's ability to meet its currently maturing debts