Vertical and Horizontal Analysis of Income Statement and Balance Sheet. Prepare a two-year vertical and horizontal analysis using the common size income statement and balance sheet of the two companies. Discuss the importance and meaning of vertical and horizontal analysis. Discuss both the positive and negative trends.

LINAMAR CORPORATION Consolidated Statements of Financial Position (in thousands of Canadian dollars) December 31 December 31 2019 2018 ASSETS Cash and cash equivalents 338,226 471,975 Accounts and other receivables (Note 27) 988,245 1,285,806 Inventories (Note 7) 991,759 1,218,956 Income taxes recoverable (Note 8) 47,216 32.509 Current portion of long-term receivables (Note 27) 118,095 134,402 Current portion of derivative financial instruments (Note 27) 6,415 5,229 Other current assets 40,879 31,439 Current Assets 2,530,835 3,180,316 Long-term receivables (Note 27) 403,811 382,384 Derivative financial instruments (Note 27) 84,758 66,048 Property, plant and equipment (Note 9) 2,758,764 2,654,536 Investments 6,642 4.253 Deferred tax assets (Note 8) 61,840 53,495 Intangible assets (Note 10) 873,616 900,571 Goodwill (Note 11) 858,541 891,818 Assets 7,578.807 8, 133,421 LIABILITIES Short-term borrowings 5,561 16,978 Accounts payable and accrued liabilities (Note 27) 1,271,856 1,471,447 Provisions (Note 12) 40.358 32,534 Income taxes payable (Note 8) 23, 188 52.774 Current portion of long-term debt (Note 13) 26,186 8,722 Current Liabilities 1,367,149 1,582,455 Long-term debt (Note 13) 1,865,942 2,462,788 Derivative financial instruments (Notes 27) 20, 153 15,882 Deferred tax liabilities (Note 8 295,808 269,164 Liabilities 3,549,052 4,330.289 EQUITY Capital stock (Note 14) 132,356 122,393 Retained earnings 3,830,666 3,459,841 Contributed surplus 27,578 28,449 Accumulated other comprehensive earnings (loss) 39, 155 192,449 Equity 4,029,755 3,803,132 Liabilities and Equity 7,578,807 8,133,421MAGNA INTERNATIONAL INC. CONSOLIDATED BALANCE SHEETS [U.S. dollars in millions, except shares issued] As at December 31, Note 2019 2018 ASSETS Current assets Cash and cash equivalents 6 S 1,276 684 Accounts receivable 5,927 6,548 Inventories 3,304 3,403 Prepaid expenses and other 6. 17 238 193 Income taxes receivable 57 Assets held for sale 3 949 10,745 11,834 Investments 9 1,210 2,189 Fixed assets, net 10 8,260 8,095 Operating lease right-of-use assets 18 1.811 Intangible assets, net 13 484 560 Goodwill 7, 11 1,976 1,979 Deferred tax assets 12 308 300 Other assets 14, 19 996 988 $ 25,790 $ 25,945 LIABILITIES AND SHAREHOLDERS' EQUITY t liabilities Short-term borrowings 17 S $ 1,098 Accounts payable 5,628 6.094 Accrued salaries and wages 15 753 769 Other accrued liabilities 16 1,800 1,734 Income taxes payable 17 Long-term debt due within one year 17 106 201 Current portion of operating lease liabilities 18 225 Liabilities held for sale 408 8,529 10,304 Long-term debt 3,062 3,084 Operating lease liabilities 1,601 Long-term employee benefit liabilities 677 597 Other long-term liabilities 371 400 Deferred tax liabilities 419 401 14,659 14,786 Shareholders' equity Common Shares [issued: 2019 - 303,250,415; 2018 -327,339,095] 21 3,198 3,380 Contributed surplus 127 120 Retained earnings 8,596 8,376 Accumulated other comprehensive loss 22 (1,090) (1,175) 10,83 10,701 Non-controlling interests 300 458 11,131 11,159 $ 25,790 $ 25,945