Part A: Horizontal Analysis

Item	2015	2014	2013
Net Sales	$970 000	$950 000	$700 000
Cost of Goods Sold	700 000	640 000	500 000
Gross Profit	$270 000	$310 000	$200 000

Instructions:

1. Using horizontal analysis, calculate the trend percentages for net sales, cost of goods sold, and gross profit based on the data provided for Jonel Corporation.
2. Explain whether the trends are favourable or unfavourable for each item.template for part A

Part B: Horizontal and Vertical Analysis

	December 31, 2015	December 31, 2014
Accounts Receivable	$950 000	$500 000
Inventory	910 000	850 000
Total Assets	4 100 000	3 100 000

Instructions:

1.Using the above data taken from the comparative balance sheet of Sayyea Corporation, complete a horizontal analysis comparing 2015 to the base year 2014. Explain whether the trends are favourable or unfavourable.

template for horizontal analysis in part b

2.Using the above data from the comparative balance sheet of Sayyea Corporation, complete a vertical analysis that will compare accounts receivable and inventory to total assets for each year. Explain whether the trends are favourable or unfavourable.

template for vertical analysis in part b

3.What conclusions can you draw?

can you please answer the question in the same template

Go H Jonel Corporation Comparative Income Statement December 31 Increase (Decrease) Increase (Decrease) during 2015 during 2014 2015 2014 2013 Amount % Amount % 970,000 950,000 700,000 700,000 640,000 500,000 Net Sales Cost of Goods Sold Gross Profit B D E E 1 2 3 4 Sayyea Corporation Comparative Balance Sheet December 31 Increase (Decrease) during 2015 2015 2014 Amount % 950,000 500,000 910,000 850,000 5 6 7 Accounts Receivable 8 Inventory 9 10 Total Assets 11 12 4,100,000 3,100,000 A B C D E F Sayyea Corporation Comparative Balance Sheet December 31 % % 1 2 3 4 5 6 7 Accounts Receivable 8 Inventory 9 10 Total Assets 11 12 13 2015 950,000 910,000 2014 500,000 850,000 4,100,000 3,100,000 1