Horizontal Analysis 2019 - 2018 Which accounts require additional investigation and why. Vertical Analysis 2019 2018 22,500 Kirchoff Corporation Income Statement Year Ended December 31 2019 2018 Revenue 1,100,000 950,000 Cost of goods sold 675,000 635,000 Gross profit 425,000 315,000 Operating expenses 295,000 215,000 Profit from operations 130,000 100,000 Interest expense 12,000 10,000 Profit before income tax 118,000 90,000 Income expense tax 38,250 Net income 79,750 67,500 Kirchoff Corporation Statement of Financial Position December 31 2019 2018 Assets Cash 50,000 49,000 Accounts receivable 175,000 111,000 Inventory 375,000 275,000 Long-term investments 50,000 50,000 Property, plant and equipment (r 685,000 475,000 Total assets 1,335,000 960,000 Liabilities and Shareholders' equity Liabilities Current liabilities 305,000 265,000 Non-current liabilities 225,000 125,000 Total liabilities 530,000 390,000 Shareholders' equity Common stock 531,000 375,000 Retained earnings 274,000 195,000 Total Equity 805,000 570,000 Total Liabilities and Equity 1,335,000 960,000