EXERCISE 1

A comparative Statement of Financial Position for Target appears below.

TARGET As at 31 December
	2020 ($)	2019 ($)
ASSETS
Current Assets	330,000	315,000
Property, Plant and Equipment (net)	400,000	250,000
Intangible Assets	240,000	257,000
Total Assets	970,000	822,000
LIABILITIES
Current Liabilities	261,000	275,400
Long-term Liabilities	480,000	326,000
STOCKHOLDERS EQUITY	229,000	220,600
Total Liabilities and Stockholders Equity	970,000	822,000

Required:

(a) Prepare a horizontal analysis by using 2019 data as a base year.

(b) Compute current ratio for both years.