The Stair Company sells computer parts through a retail store that it operates. The firms comparative income statement and balance sheet for the years 2019 and 2018 are shown below.
Required:
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1-a. Complete both a horizontal and a vertical analysis of comparative income statement for the years 2019 and 2018.
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1-b. Complete both a horizontal and a vertical analysis of comparative balance sheet for the years 2019 and 2018.
Analyze: Based on your analysis, which expense category experienced the greatest percentage change?
Req la Req 1b Analyze Complete both a horizontal and a vertical analysis of comparative income statement for the years 2019 and 2018. (Round your percentage answers to 1 decimal place. i.e., 0.123 should be entered as 12.3.) Increase or (Decrease) Amount Percent The Stair Company Comparative Income Statement For Years Ended December 31, 2019 and 2018 Amounts Percent of net sales Account name 2019 2018 2019 2018 Revenue Sales 927,000 767,250 Less Sales Returns and Allowances 27,000 17.250 % % Net Sales 900,000 750,000 % % Cost of Goods Sold Merchandise Inventory, January 1 90,000 88,500 Net Purchases 359,100 300,000 % % Total Merchandise Available for Sale 449,100 388,500 % % Less Merchandise Inventory, December 31 91,800 90,000 Cost of Goods Sold 357,300 298,500 Gross Profit on Sales 542,700 451,500 Operating Expenses Selling Expenses Sales Salaries Expense 94,500 93,000 Payroll Tax Expense-Selling 9,900 9,000 Other Selling Expenses 30,600 17,500 Total Selling Expenses 135,000 119,500 General and Administrative Expenses Officers' Salaries Expense 142,200 114,000 Payroll Tax Expense-Administrative 18,000 14,400 Depreciation Expense 9,000 Other General and Administrative Expenses 18,000 10,500 Total General and Administrative 187,200 147,900 Expenses Total Operating Expenses 322,200 267,400 Net Income Before Income Taxes 220,500 184, 100 Income Tax Expense 66,150 55,230 Net Income After Income Taxes 154,350 128,870 9,000 Complete both a horizontal and a vertical analysis of comparative balance sheet for the years 2019 and 2018. (Round your percentage answers to 1 decimal place. i.e., 0.123 should be entered as 12.3. Negative amounts should be indicated by a minus sign.) Increase or (Decrease) Amount Percent % The Stair Company Comparative Balance Sheet For Years Ended December 31, 2019 and 2018 Amounts Percent of total assets Account name 2019 2018 2019 2018 Assets Current Assets Cash 115,500 51,000 Accounts Receivable 101,600 93,000 Merchandise Inventory 94,000 91,200 1% Prepaid Expenses 10,100 6,000 Supplies 700 300 Total Current Assets 321,900 241,500 Property, Plant, and Equipment Land 81,000 81,000 % % Building and Equipment 88,000 88,000 Less Accumulated Depreciation (30,000) (22,500) Net Book Value-Building and Equipment 58,000 65,500 % % Total Property, Plant, and Equipment 139,000 146,500 Total Assets 460,900 388,000 % % Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 33,600 63,000 % % Sales Tax Payable 1,600 4,000 Payroll Taxes Payable 1,700 1,500 Income Taxes Payable 1,600 8,000 Total Current Liabilities 38,500 76,500 % % Long-Term Liabilities Mortgage Payable 45,600 51,000 Total Long-Term Liabilities 45,600 51,000 Total Liabilities 84,100 127,500 Stockholders' Equity Common Stock ($1 par, 10,000 shares authorized; 10,000 shares issued and 10,000 10,000 outstanding) Paid-in CapitalCommon Stock 10,000 10,000 Retained Earnings 356,800 240,500 Total Stockholders' Equity 376,800 260,500 Total Liabilities and Stockholders' Equity 460,900 388,000 1% Req la Req 1b Analyze Based on your analysis, which expense category experienced the greatest percentage change? The greatest percentage change Req la Req 1b Analyze Complete both a horizontal and a vertical analysis of comparative income statement for the years 2019 and 2018. (Round your percentage answers to 1 decimal place. i.e., 0.123 should be entered as 12.3.) Increase or (Decrease) Amount Percent The Stair Company Comparative Income Statement For Years Ended December 31, 2019 and 2018 Amounts Percent of net sales Account name 2019 2018 2019 2018 Revenue Sales 927,000 767,250 Less Sales Returns and Allowances 27,000 17.250 % % Net Sales 900,000 750,000 % % Cost of Goods Sold Merchandise Inventory, January 1 90,000 88,500 Net Purchases 359,100 300,000 % % Total Merchandise Available for Sale 449,100 388,500 % % Less Merchandise Inventory, December 31 91,800 90,000 Cost of Goods Sold 357,300 298,500 Gross Profit on Sales 542,700 451,500 Operating Expenses Selling Expenses Sales Salaries Expense 94,500 93,000 Payroll Tax Expense-Selling 9,900 9,000 Other Selling Expenses 30,600 17,500 Total Selling Expenses 135,000 119,500 General and Administrative Expenses Officers' Salaries Expense 142,200 114,000 Payroll Tax Expense-Administrative 18,000 14,400 Depreciation Expense 9,000 Other General and Administrative Expenses 18,000 10,500 Total General and Administrative 187,200 147,900 Expenses Total Operating Expenses 322,200 267,400 Net Income Before Income Taxes 220,500 184, 100 Income Tax Expense 66,150 55,230 Net Income After Income Taxes 154,350 128,870 9,000 Complete both a horizontal and a vertical analysis of comparative balance sheet for the years 2019 and 2018. (Round your percentage answers to 1 decimal place. i.e., 0.123 should be entered as 12.3. Negative amounts should be indicated by a minus sign.) Increase or (Decrease) Amount Percent % The Stair Company Comparative Balance Sheet For Years Ended December 31, 2019 and 2018 Amounts Percent of total assets Account name 2019 2018 2019 2018 Assets Current Assets Cash 115,500 51,000 Accounts Receivable 101,600 93,000 Merchandise Inventory 94,000 91,200 1% Prepaid Expenses 10,100 6,000 Supplies 700 300 Total Current Assets 321,900 241,500 Property, Plant, and Equipment Land 81,000 81,000 % % Building and Equipment 88,000 88,000 Less Accumulated Depreciation (30,000) (22,500) Net Book Value-Building and Equipment 58,000 65,500 % % Total Property, Plant, and Equipment 139,000 146,500 Total Assets 460,900 388,000 % % Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 33,600 63,000 % % Sales Tax Payable 1,600 4,000 Payroll Taxes Payable 1,700 1,500 Income Taxes Payable 1,600 8,000 Total Current Liabilities 38,500 76,500 % % Long-Term Liabilities Mortgage Payable 45,600 51,000 Total Long-Term Liabilities 45,600 51,000 Total Liabilities 84,100 127,500 Stockholders' Equity Common Stock ($1 par, 10,000 shares authorized; 10,000 shares issued and 10,000 10,000 outstanding) Paid-in CapitalCommon Stock 10,000 10,000 Retained Earnings 356,800 240,500 Total Stockholders' Equity 376,800 260,500 Total Liabilities and Stockholders' Equity 460,900 388,000 1% Req la Req 1b Analyze Based on your analysis, which expense category experienced the greatest percentage change? The greatest percentage change
