How is the company doing? Comment specifically on the firm's profitability, liquidity and solvency. Prepare a brief analysis in support of your conclusion. As part of your analysis, in support of your conclusion, you must use AT LEAST one type of VERTICAL analysis and AT LEAST one type of HORIZONTAL analysis. Also, you MUST show the use of AT LEAST ONE financial ratio or metric for each of the areas described. Show ALL COMPUTATIONS below and on the opposite page and be sure that your work is CLEAR in order to receive credit for your answers.

Pls help with explanations! Will give like!

Use the following to answer question 6: THE CHAIR COMPANY, INC. BALANCE SHEET AS OF DECEMBER 31, 2013 AND 2012 ASSETS 2013 Cash Accounts receivable Inventory Current assets Equipment, net of accumulated depreciation $ 20,000 100,000 30,000 $ 150,000 24,000 14.9% 12.3% 25.0% 19.2% 34.1% 0.0% 42.9% 42.9% 42.9% Total Assets THE CHAIR COMPANY, INC Comparative Income Statements For the Years Ended December 31 2013 and 2012 2012 2013 2012 $ 30,000 60,000 Sales $ 500,000 $ 435,000 26,000 cost of goods sold 387,500 345,000 $ 116,000 Gross Margin $ 112,500 $ 90,000 30,000 Other operating expenses 65,300 54,800 Income from operations $ 47,200 $ 35,200 7,200 Interest expense 7,200 $ 146,000 Income before taxes $ 40,000 $ 28,000 2012 Income taxes 16,000 11,200 Net income $ 24,000 $ 16,800 $ 20,000 2.400 $ 22,400 Average assets $ 160,000 $128,000 24,000 $ 46,400 Industry average statistics - this year 99.600 Gross margin percentage 25% 25% $ 146,000 20% 20% Net margin 8% 8% $ 174,000 Liabilities & Equity 2013 Accounts payable Accrued expenses Current liabilities Notes payable - long term Total liabilies $ 26,000 2,000 $ 28,000 20,000 $ 48,000 Owners' equity 126,000 ROI Total Liabilities & Equity | $ 174,000