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Grade 9 accounting. I was given an excel spreadsheet and it told me to 'Complete the Ratios Sheet for Solar City, ensuring that you link

Grade 9 accounting.

I was given an excel spreadsheet and it told me to 'Complete the Ratios Sheet for Solar City, ensuring that you link it to the comparative Income Statements and Balance Sheets given.'

I have attached the excel spreadsheets. I Really don't understand what I am meant to do with the horizontal analysis that is next to the balance sheet and income statement. How exactly would i calculate the horizontal analysis in this question?

Also how exactly do I calculate the net profit ratio, the return on owners equity, debt ratio and average owners equity?

If you are able to help that would be totally amazing. Thank you so much!

image text in transcribedimage text in transcribedimage text in transcribed
BalSheet IncState Ratios Solar City Ratio Worksheet for 30 June: 2019 2018 Changes Net Profit Ratio (%) Return on Owner's Equity Ratio (%) Debt Ratio (%) Average Owner's Equity ($)BalSheet IncState Ratios Solar City Income Statements for the year ended 30 June: 2019 2018 Horizontal Analysis $ $ $ $ Sales 550900 570400 Less Cost of Goods Sold 200350 200550 Gross Profit 350550 369850 Add Other Revenue Rent Revenue 16500 14300 Interest Revenue 870 17370 700 15000 367920 384850 Less Other Expenses Advertising 4600 2600 Insurance 5300 6100 Telephone 3800 3000 Vehicle Expenses 2900 2500 Electricity 4890 4590 Office Expenses 2130 1890 Wages and Salaries 298000 260900 Interest Expense 12700 11450 Bad Debts 3800 338120 2700 295730 Net Profit $29,800 $89,120BalSheet IncState Ratios Solar City Balance Sheets as at 30 June: 2019 2018 Horizontal analysis $ $ $ Assets Cash at Bank 10200 4262 Accounts Receivable 189500 180560 Inventories 38900 35900 Equipment 18499 18499 Office Furniture 10870 12870 Car Fleet 89000 79000 Buildings 280000 280000 Land 450000 1086969 450000 1061091 Less Liabilities Accounts Payable 17220 14380 GST Clearing 2678 2540 Bank Loan 15000 5000 Mortgage on Premises 250000 284898 253000 275920 Net Assets $802,071 $785,171 Owner's Equity Capital 785171 778000 Add Net Profit 29800 814971 89120 867120 Less Drawings 12900 $81,949 $802,071 $785,171

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