The following are balance sheets and income statements for Bu-346 Enterprises for the years indicated. Please do a vertical analysis on the balance sheet and income statement for BOTH years. Then do a horizontal analysis for 1999 for both statements. In 2-3 sentences, comment on your findings.

Balance Sheet December 31 1999 1998

ASSETS

Cash and marketable securities $ 30,000 $ 25,000

Accounts receivable 110,000 90,000

Inventories 100,000 80,000

Total current assets 240,000 195,000

Gross plant and equipment 250,000 220,000

Less accumulated appreciation -100,000 -65,000

Net plant and equipment 150,000 155,000

Land 50,000 50,000

Total fixed assets 200,000 205,000

Total assets $ 440,000 $ 400.000

LIABILTIES AND EQUITY

Accounts payable $ 58,000 $ 50,000

Notes payable 50,000 50,000

Accrued liabilities 0 0

Total current liabilities 108,000 100,000

Long-term debt 32,000 20,000

Total liabilities 140,000 120,000

Total stockholders' equity 300,000 280,000

Total liabilities and equity $ 440,000 $ 400,000

Income Statement Year Ended Dec. 31 1999 1998

Net revenues or sales $1,100,000 $1,000,000

Cost of goods sold 700,000 650,000

Gross profit 400,000 350,000

Operating Expenses:

General and administrative 143,000 135,000

Selling and marketing 88,000 80,000

Depreciation 44,000 40,000

Operating Income 125,000 95,000

Interest 15,000 15,000

Income before taxes 110,000 80,000

Income taxes (40%) 44,000 32,000

Net income $ 66,000 43,000