Financial information for Nealon Inc. is presented below.

December 31, 2017 December 31, 2016

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 2017 using 2016 as the base year.7 points

(b) What is the primary use of horizontal analysis? 3 points