Use excel to complete it

Part 1: Horizontal Analysis

Data Table Horizontal Analysis

Item	2014	2013	2012	2011	2010
Net Sales	$980,000	$900,000	$650,000	$550,000	$500,000
Cost of Goods Sold	700,000	640,000	480,000	420,000	400,000
Gross Profit	$280,000	$260,000	$170,000	$130,000	$100,000

Instructions Using horizontal analysis and 2010 as the base year, calculate the trend percentages for net sales, cost of goods sold, and gross profit. Explain whether the trends are favourable or unfavourable for each item.

Part 2: Horizontal and Vertical Analysis

Using the following selected items from the comparative balance sheet of Cantley Company, illustrate horizontal and vertical analysis. Use a separate sheet for each type of analysis. What conclusions can you draw?

Hint* The horizontal analysis will compare 2015 to the base year 2014. The vertical analysis will compare Accounts Receivable and Inventory to Total Assets for each year.

Comparative Balance Sheet - Horizontal and Vertical Analysis

	December 31, 2015	December 31, 2014
Accounts Receivable	$ 960,000	$ 600,000
Inventory	920,000	750,000
Total Assets	4,000,000	3,000,000

Part 3: Comparative Balance Sheet - Horizontal and Vertical Analysis

Assets	2014	2013
Current Assets	$ 322	$280
Capital Assets	678	520
Total Assets	$1,000	$800
Liabilities and Shareholders' Equity
Current Liabilities	$ 180	$120
Long-term Debt	200	160
Common Shares	320	320
Retained Earnings	300	200
Total Liabilities and Shareholders' Equity	$1,000	$800

Instructions (a) Using horizontal analysis, show the percentage change for each balance sheet item, using 2013 as a base year. (b) Using vertical analysis, prepare a common size comparative balance sheet for each year.