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Presented below are the consolidated balance sheets and income statements for Megabus Company: Required: A. Using the template provided, prepare common-size financial statements and a
Presented below are the consolidated balance sheets and income statements for Megabus Company: Required: A. Using the template provided, prepare common-size financial statements and a trend analysis using vertical and horizontal analysis techniques for Megabus Company for both years. B. Both the Marketable securities and Equipment accounts showed large increases/(decreases) between Years 1 \& 2. Based on your understanding of the correlation of information provided using the horizontal and vertical analysis methods, provide a brief explanation as to which of these rather large increases/(decreases) would be the most significant from an analysis point of view. C. Provide an explanation for the change in return on sales (Net Income/ Sales) for Megabus Company
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