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    Vertical and Horizontal Analyses

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    2013 2012
    Assets
    Cash $2,300,000.00 $800,000.00
    Accounts Receivable $1,500,000.00 $1,200,000.00
    Inventory $2,800,000.00 $1,700,000.00
    Buildings $11,000,000.00 $11,000,000.00
    Less: Accumulated depreciation $(2,000,000.00) $(1,000,000.00)
    Total Assets $15,600,000.00 $13,700,000.00

    Liabilities and Stockholders' Equity
    Accounts payable $1,450,000.00 $1,700,000.00
    Contingent liability $1,500,000.00 $-
    Common stock $8,000,000.00 $8,000,000.00
    Retained earnings $4,650,000.00 $4,000,000.00
    Total liabilities and stockholders's equity $15,600,000.00 $13,700,000.00

    Question:
    1. Prepare a vertical analysis of the balance sheet data for 2013 and 2012. Express each amount as a percentage of total assets
    2. Prepare a horizontal analysis for 2013 using 2012 as the base year.

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    https://brainmass.com/business/contingencies/vertical-horizontal-analyses-428994

    Solution Summary

    The following posting helps prepare vertical and horizontal analyses.

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