Page 2 BERNARDO SUPPLY CO., INC. BALANCE SHEET December 31, 2020 and 2019 2020 Vert. 2019 Horizontal $ $ 348,190 1,118,244 Cash and cash equivalents Trade accounts receivable Marketable securities Inventory Property & equipment, net Cash value of life insurance policies (net of loans) Investments in suppliers' co-op programs Deposits 270,845 1,468,124 45,000 1,355,869 152,246 25,697 42,010 3,765 1,605,749 174,936 24,851 42,010 3,765 $ 3,363.556 $ 3,317,746 TOTAL ASSETS 2020 Vert. 2019 Horizontal $ Accounts payable Sales tax payable Notes payable - GMAC Loans payable - Bank of America, due 2023 Long-term debt, net of current portion Common stock (no par: 500 shares authorized, Retained earnings Less: Cost of treasury stock (20 shares) 805,672 101.555 11.506 451,815 362,271 8,000 1,923,618 (300,880) 619,715 91,315 15.367 558,892 612,271 8,000 1,713,066 (300,880) s 3,317,746 S 3,363,556 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Page 3 BERNARDO SUPPLY CO., INC. STATEMENT OF INCOME December 31, 2020 and 2019 2020 Vert. 2019 Horizontal SALES $ 6,746,474 $ 6,502,799 COST OF GOODS SOLD 5,165,317 4,919,075 GROSS PROFIT 1,581,157 1,583,724 SELLING AND ADMINISTRATIVE EXPENSES 1,355.331 1.437,287 OPERATING INCOME 225,826 146,436 OTHER INCOME (EXPENSE) Dividend income Interest expense Total other income (expense) (15,274) (15,274) 111 (12,791) (12,680) INCOME BEFORE INCOME TAXES 210,532 133,756 PROVISION FOR INCOME TAXES s 210,552 s 133,756 NET INCOME Required: Horizontal Analysis Vertical Analysis For the balance sheet, use Total Assets as your key element For the statement of income, use Sales as your key element Calculate vertical analysis for 2020 ONLY Ratios Current ratio Quick ratio Return on assets Gross margin ROUND YOUR ANSWERS UP 2 DECIMAL POINTS