Wine Depot, Inc.
Income Statemnt
for the period ended
	December-2015		% Sales	December-2016		% Sales		% Change
Sales		$ 275,000			$ 325,000
Less: Cost of Goods Sold		115,000			195,000
Gross Margin		160,000			130,000
Expenses:
Advertising	$ 7,000			$ 18,000
Marketing	5,000			3,000
Depreciation	8,000			8,000
Interest	4,000			1,500
Salary	50,000			85,000
Wages	20,000			15,000
Supplies	4,600			7,000
Utilities	7,400	106,000		8,500	146,000
Net income before taxes		54,000			(16,000)
Income taxes		6,000			4,000
Net income		$ 48,000			$ (20,000)

Wine Depot, Inc.
Balance Sheet
as of
	December-2015		% Assets	December-2016		% Assets	% Change
Assets
Current Assets:
Cash	$ 5,000			$ 7,000
Short-Term Investments	2,000			3,500
Accounts Receivable	6,000			8,500
Inventory	6,500			9,200
Prepaid Expenses	700			500
Supplies	1,800	22,000		2,300	31,000
Equipment	85,000			85,000
Less: Accumulated Depreciation	8,000	77,000		16,000	69,000
Total		$ 99,000			$ 100,000
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities:
Accounts Payable	$ 16,000			$ 43,500
Income Tax Payable	6,000			1,000
Notes Payable - Equipment	9,000			8,000
Notes Payable - Other	18,000			15,000
Payroll Liabilities	2,000	51,000		3,500	71,000
Stockholders' Equity
Common Stock	1,000			1,000
Retained Earnings	47,000	48,000		28,000	29,000
Total		$ 99,000			$ 100,000

Wine Depot, Inc.
Ratio Analysis
December 2016
Profitability
Return on owners' investment
Return on total investment
Profit margin
Gross margin
Liquidity
Current ratio
Quick ratio
Receivable turnover
Inventory turnover
Solvency
Debt-to-equity
Liability

1. Create a vertical and a horizontal analysis of the balance sheet and income statement in the columns provided. (Note: horizontal analysis will compare 12/31/15 to 12/31/16)