The Gap Inc. Balance sheets from its 1998 annual report are presented in Exhibit 5-3.

Required

a. Using the balance sheets, prepare a vertical common-size analysis for 1999 and 1998. Use total assets as a base.

b. Using the balance sheets, prepare a horizontal common-size analysis for 1999 and 1998. Use 1998 as the base.

c. Comment on significant trends that appear in (a) and (b).

Exhibits 5-3

The Kelly Services, Inc., and Subsidiaries balance sheets from its 2010 annual report are presented in Exhibit 5-4.

a. Using the balance sheets, prepare a vertical common-size analysis for 2010 and 2009. Use total assets as a base.

b. Using the balance sheets, prepare a horizontal common size analysis for 2010 and 2009. Use 2009 as the base.

c. Comment on significant trends that appear in (a) and (b)