Please help me understand how to complete the following Horizontal and Vertical Analysis, I am completely lost. Thank you!
A) Using the format on the following spreadsheet, prepare a horizontal analysis comparing the years 2015 and 2014. *Round ercenta es to 1 decimal. B) Interpret the findings. Explain what "may"-llave happened from 2014 to 2015. The following information is provided for Harris Company for the year ended 12/31/14 Cost of Goods Sold 400,000 Selling Expenses 60,000 Administrative Expenses 48,000 Sales 750,000 Other Income 6,000 Harris Company Income Statement For the Year Ended December 31,2015 Sales 900,000 Cost of Goods Sold: Finished goods inventory 1/1/15 163,000 Cost of Goods Manufactured 391,000 Cost of finished goods AFS 554,000 Less finished goods inventory 12/31/15 133,000 Cost of Goods Sold 421,000 Gross Profit 479,000 Operating Expenses: Administrative Expenses: Office Salaries Expense 62,000 Depreciation Exp-Office equipment 19,000 Property tax-Office building 9,500 90,500 Selling Expenses: Advertising Expense 65,000 Sales Salaries Expense 122,000 187,000 Total Operating Expense 277,500 Income from Operations 201,500 Other Income 4,500 Net income 206,000 A) Horizontal Analysis Harris Company Income Statement For the Years Ended December 31,2015 and 2014 Increase(Decrease) 2015 2014 Amount Percent Sales Cost of Goods Sold Gross Profit Administrative Expenses Selling Expenses Total Operating Expenses Income from Operations Other Income Net Income 3) Intrepretation of findingsA) Using the format on the following spreadsheet, prepare a common-sized vertical analysis for Dell Inc. and Apple Inc. **Only use percentages. Round to 1 decimal point. B) Interpret the findings, comparing the companies' performances. The condensed income statements through income fro operations for Dell Inc. and Apple Inc. for recent fiscal years follow (numbers in millions of dollars): Dell Inc. Apple Inc. Sales 5 56,940 5 156,508 Cost of sales 44,754 87,846 Gross Profit S 12,186 S 68,662 Selling, general, 81 administrative expenses 8,102 10,040 Research and development 1,072 3,381 Operating expenses S 9,174 S 13,421 Income from operations S 3,012 S 55,241 A) Common-sized Vertical Analysis DELL INC. AND APPLE INC. Common-Sized Statements Dell Inc. Apple Inc. Sales 100.0% Cost of sales Gross Profit Operating expenses: Selling, general, 8t administrative expenses Research and development Total operating expenses Income from operations B) Intrepretation of findings