Question No.1

The Income and Expenditure Statement and the Statement of Financial Position for International Corporation Limited as at December 31, 2013 and 2013 are shown below:

Income and Expenditure Statement for the period ending 31 December 2014 and 2013

	2014	2013
	$000	$000
Turnover	1,500	1,000
Cost of Sales	(600)	(400)
Gross Profit	900	600
Less Expenses:
Salaries & Wages	375	250
Rent	80	50
Office Supplies	20	10
Utilities	30	20
Administrative Expenses	110	90
Total Expenses	615	420
Retained Profit	285	180

Statement of Financial Position as at 31 December 31, 2014 and 2013

	2014	2013
	$000	$000
Non- Current Assets	800	400
Current Assets:
Inventory	275	150
Account Receivables	525	350
Bank & Cash	180	100
	980	600
Less Current Liabilities:
Accounts Payables	300	180
Accruals	120	70
	420	250
Less Non- Current Liabilities:
Debentures	525	300
Total Assets less Total Liabilities	835	450
Share Capital & Reserves:
Share Capital	400	250
Retained Earnings	580	350
	980	600

Required:

1. Prepare the horizontal analysis for the Income & Expenditure Statement for the company for the year ended 31 December 2013 and 2014.
2. Prepare horizontal analysis for the Statement of Financial Position as shown below:

• Schedule of Non- Current Assets
• Schedule of Current Assets & Current Liabilities
• Schedule of Share Capital and Reserves

Question No.2

Use the Income and Expenditure Statement and Statement of Financial Position of International Corporation Limited for 2014 and 203 to prepare a common size Income and Expenditure Statement and Statement of Financial Position.