T. Taylor Inc. Income Statement For years ended December 31, 2017 and 2018 2018 2017 Sales (all on credit) $539,000 $485,000 Cost of goods sold (324.000) (266.000) Gross margin 215,000 219,000 Depreciation expense 37,000 52,000 Other operating 116.000 96.000 expenses Total operating 153,000 148,000 expenses Operating Income 62.000 71.000 T. Taylor Inc. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Change Current assets: Cash $66,130 $47,500 $18,630 Accounts receivable (net) 41,000 34,000 7,000 Inventory 46.000 44.000 2,000 Prepaid expenses 1,300 2,800 -1,500 Other current assets 1.770 2.700 -930 Total current assets 156,200 131,000 25,200 Long-term Investments 84,000 58,000 26,000 310,000 259,000 51,000 (4.800) (3.600) Plant assets Less: accumulated depreciation Total plant assets (78,600) Other Income (expenses) Interest expense Gain on sale of Investments Loss on sale of plant assets Total other Income (expenses) (52,000) 26,600 5,600 3,900 231,400 207.000 24400 (2.800) (3.400) Total assets 471.600 396.000 75.600 (13,200) (3,100) Income before Income taxes Income taxes expense Net Income 60,000 67.900 (18.000). (20.370) $42.000 $47.530 Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities $27,400 4,800 1.400 33,600 $28,000 $-600 4,000 800 5.000 -3.600 37,000 3,400 Long term liabilities: Notes Payable Total liabilities 242,000 275,600 180,000 62,000 217,000 58,600 T. Taylor Inc. Statement of Retained Earnings For the year ended December 31, 2018 2018 2017 Ret. earnings, Jan. 1 $29,000 $0 Add: net income 42.000 47,530 Deduct: Dividends (25,000). 18,530) Increase in retained 17,000 29,000 earnings Ret. earnings, Dec. 31 $46,000 $29.000 120,000 Stockholders' equity Common stock, $5 par value Additional pald-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 30,000 46.000 196,000 $471.600 120,000 0 30,000 29.000 17.000 179,000 17,000 $396.000 $75.600 Other Information: Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock 24,000 $1.75 $1.04 $14 24,000 $1.98 $0.77 $12 Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare the cash flows from operations section of T. Taylor Inc.'s 2018 statement of cash flows using the indirect method. Enter items to be subtracted as negative values. T. Taylor Inc. Cash Flows from Operating ActivitiesIndirect Method For Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial income statements for 2017 and 2018. Enter decreases as negative amounts/percents. T. Taylor Inc. PARTIAL INCOME STATEMENT (HORIZONTAL ANALYSIS) For the years ended December 31, 2017 and 2018 Increase/decrease 2018 2017 Amount Percent Sales $ 485,000 Cost of goods sold Gross margin Expenses Depreciation expense Other operating expenses Total operating expenses Operating income 96,000 Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial balance sheets for 2017 and 2018. Enter decreases as negative amounts/percents. T. Taylor Inc. Partial Balance Sheet (Horizontal Analysis) For the years ended December 31, 2018 and 2017 Increase/decrease 2018 2017 Amount Percent Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Other current assets Total current assets Long-term investments Plant assets Less: accumulated depreciation Total plant assets Total assets