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: 1-a. Complete both a horizontal and a vertical analysis of comparative income statement for the years 2019 and 2018. 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?
Required A:
Required B:
Required C:
Complete this question by entering your answers in the tabs below. Req la Req 1b Analyze Complete both a horizontal and a vertical analysis of comparative income statement for the years 2019 and 2018. (Round answers to 1 decimal place. i.e., 0.123 should be entered as 12.3.) The Stair Company Comparative Income Statement For Years Ended December 31, 2019 and 2018 Amounts Percent of net sales 2019 2018 2019 2018 Increase or (Decrease) Amount Percent Account name Revenue Sales Less Sales Returns and Allowances 1,028,000 28,000 1,000,000 869,550 19,550 850,000 Net Sales Cost of Goods Sold Merchandise Inventory, January 1 Net Purchases 102,000 358,000 460,000 105,000 355,000 645,000 96,900 306,850 403,750 102,000 301,750 548,250 105,000 10,000 26,500 141,500 96,050 9,350 16,700 122,100 Total Merchandise Available for Sale Less Merchandise Inventory, December 31 Cost of Goods Sold Gross Profit on Sales Operating Expenses Selling Expenses Sales Salaries Expense Payroll Tax Expense-Selling Other Selling Expenses Total Selling Expenses General and Administrative Expenses Officers' Salaries Expense Payroll Tax Expense-Administrative Depreciation Expense Other General and Administrative Expenses Total General and Administrative Expenses Total Operating Expenses Net Income Before Income Taxes Income Tax Expense Net Income After Income Taxes 152,000 18,000 8,500 16,000 127,500 11,900 8,500 11,900 194,500 159,800 336,000 309,000 92,700 216,300 281,900 266,350 79,905 186,445 Complete both a horizontal and a vertical analysis of comparative balance sheet for the years 2019 and 2018. (Round you 1 decimal place. i.e., 0.123 should be entered as 12.3. Negative amounts should be indicated by a minus sign.) The Stair Company Comparative Balance Sheet For Years Ended December 31, 2019 and 2018 Amounts Percent of total assets 2019 2018 2019 2018 Increase or (Decrease) Amount Percent Account name Assets Current Assets Cash Accounts Receivable Merchandise Inventory Prepaid Expenses Supplies Total Current Assets Property, Plant, and Equipment 116,600 102,700 94,080 10,200 1,500 325,080 52,000 94,000 91,200 6,000 600 243,800 Land 82,000 89,800 (28,800) 61,000 143,000 468,080 82,000 89,800 (21,600) 68,200 150,200 394,000 Building and Equipment Less Accumulated Depreciation Net Book Value-Building and Equipment Total Property, Plant, and Equipment Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Sales Tax Payable Payroll Taxes Payable Income Taxes Payable Total Current Liabilities Long-Term Liabilities Mortgage Payable Total Long-Term Liabilities Total Liabilities Stockholders' Equity Common Stock ($1 par, 10,000 shares authorized; 10,000 shares issued and outstanding) Paid-in CapitalCommon Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 34,700 1,700 1,800 1,700 39,900 64,000 5,000 1,500 9,000 7 9,500 46,700 46,700 86,600 52,000 52,000 131,500 10,000 10,000 10,000 361,480 381,480 468,080 10,000 242,500 262,500 394,000 % Based on your analysis, which expense category experienced the greatest percentage change? The greatest percentage change
