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quick response needed Question 2 [30 points] XYZ Corporation's income statement and balance sheet are given below. a) Express this information as vertical trend percents.
quick response needed Question 2 [30 points] XYZ Corporation's income statement and balance sheet are given below. a) Express this information as vertical trend percents. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. (For example: 12.34%) XYZ Corporation Incomo Statement Vortical Trond Porcentagos (%) 2016 2015 2014 2016 2015 2014 Sales $1,435,000 $1,238,000 $1,174,000 Cost of goods sold 1,230,000 1,095,000 991,000 Gross profit from sales 205,000 143,000 183,000 Operating expenses 122,000 104,000 98,000 Income before tax 83,000 39,000 85,000 Income taxes expense 24,000 11,000 25,000 Net income $59,000 $28,000 $60,000 XYZ Corporation Balance Sheet Vertical Trend Percentages (%) 2016 2015 2014 2016 2015 2014 Cash $16,000 $14,000 $12,000 Accounts receivable, net 26,000 24,000 21,000 Prepaid expenses 704,000 566,000 479,000 Merchandise inventory 409,000 385,000 321,000 Plant assets, net 206,000 182,000 147,000 Total assets $1,361,000 $1,171,000 $980,000 Accounts payable $440,000 $400,000 $350,000 Long-term notes payable 338,000 299,000 245,000 Share capital (100,000 issued) 3,000 3,000 3,000 Retained earnings 580,000 460,000 373,000 Total liabilities and equity $1,361,000 $1,171,000 $980,000 b) Assuming all other things are constant, indicate whether the vertical trend between sales and accounts recolvable is favourable on unfavourable The vertical trend is (select one) (select one lavourable lunfavourable
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