Q1. From the following information provided below, you are required to (A) Horizontal analysis of the balance sheets (B) Vertical analysis of the balance sheets as at 31st December (C) Common size analysis of the income statement for the year ended 31* December, 2014 Sheikha Ltd Balance sheet as at 31" December 2014 and 2013 Assets 2014 2013 Current Assets OMR OMR Cash 900,000 410,000 Temporary Investments 500,000 360,000 Accounts Receivable 950,000 450,000 Inventories 450,000 280,000 100,000 100,000 2,900,000 1,600,000 Prepaid Expenses Total Current Assets Long Term Investments Property Plant and Equipment Intangible Assets 900,000 400,000 2,100,000 1,500,000 600,000 500,000 Total Assets 6,500,000 4,000,000 Liabilities OMR OMR Current Liabilities 1,300,000 800,000 Long Term Liabilities 1,804,000 700,000 Total Liabilities 3,104,000 1,500,000 Stockholders' Equity 400,000 9% Preference Stock, OMR 100 400,000 par Common Stock, OMR 10 par 2,000,000 1,200,000 Retained Earnings 996,000 900,000 Total Stock Holders' Equity 3,396,000 2,500,000 Total Liabilities and Stock Holders' Equity 6,500,000 4,000,000 Income Statement For the year ending December 31, 2014 and 2013 Particulars 2014 2013 OMR OMR Sales 1,550,000 1,020,000 Less: Sales Return 50,000 20,000 Net Sales Revenue 1,500,000 1,000,000 Cost of Goods Sold 850,000 600,000 Gross Profit 650,000 400,000 Selling Expenses 150,000 120,000 Administrative Expenses 170,000 140,000 Total Operating Expenses 320,000 260,000 Income from Operations 330,000 140,000 Other Income 45,000 25,000 375,000 165,000 Other Expenses (Interest) 9,000 5,000 Income Before Income tax 366,000 160,000 Income Tax Expense 46,000 16,000 Net Income (A-B) 320,000 144,000