Financial questions - horizontal and vertical analysis

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Reference no: EM131856267 , Length: word count:250

Financial Analysis Questions - Horizontal and Vertical Analysis

Horizontal Analysis for Balance Sheet Problem 1 -

DEF Corporation Balance Sheet 31-Dec-15
	2014	2013	Difference	% of Difference
Assets:
Current Assets:
Cash and cash equivalents	300,250	248,123
Accounts receivable	110,000	105,000
Short-term investments	65,000	59,000
Inventories	54,000	56,000
Other current assets	10,000	23,000
Total current assets	539,250	491,123
Property, plant & Equipment	350,000	325,000
Less: Accumulated Depreciation	10,250	12,000
Net Property, plant & Equipment	339,750	313,000
Long-term Investments	228,124	447,654
Total Assets	928,124	1,097,654

Exercise - In excel enter the information from this slide and calculate the difference and % of difference.

Vertical Analysis Assessment Problem 2 -

DEF Corporation Income Statement 31-Dec-15
	2014	Percent	2013	Percent	Difference
Revenue
Sales revenue	75,000		72,500
Less: Sales Return/Allowance	10,000		8,500
Net Sales	65,000		64,000
Cost of goods sold
Purchases	3,300		2,155
Delivery charges	500		480
Cost of goods sold	3,800		2,635
Gross sales Profit (Loss)	61,200		61,365
Expenses
Rent	4500		4325
Utilities	800		425
Wages	4000		3750
Fuel	600		525
Total expenses	9600		9025
Net Operating Income	$1,600		$2,340

Exercise - In excel take the percent of each line item to sales (100%) and then the difference from the 2014 to 2013.

Word/Page Count: 250.

Formatting & Referencing: APA.

Attachment:- Assignment.rar

Reference no: EM131856267

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