) The comparative balance sheet of Ahmed & Company appears below:

Ahmed & Company

Comparative Balance Sheet

December 31,

Assets 2019 2018

(000) (000)

Current assets .......................................................................................... $ 450 $280

Plant assets .............................................................................................. 550 520

Total assets ........................................................................................ $1,000 $800

Liabilities and stockholders' equity

Current liabilities ..................................................................................... $ 180 $120

Long-term debt ....................................................................................... 250 160

Common stock ........................................................................................ 310 320

Retained earnings ................................................................................... 260 200

Total liabilities and stockholders' equity ........................................... $1,000 $800

Instructions

(a) Using horizontal analysis, show the percentage change for each balance sheet item using 2018 as a base year.

(b) Using vertical analysis, prepare a common size comparative balance sheet.

b) Muscat Corporation had the information listed below available in preparing an income statement for the year ended December 31, 2019. All amounts are before income taxes. Assume a 30% income tax rate for all items.

Sales $ 900,000

Expropriation of property by a foreign government (loss) $ (90,000)

Income from operation of discontinued cement division $ 100,000

Loss from disposal of cement division $ (80,000)

Operating expenses $ 120,000

Gain on sale of equipment $ 60,000

Cost of goods sold $ 420,000

Instructions

Prepare a multiple-step income statement in good form which takes into account intra period income tax allocation. Ignore EPS computations.