Problem:
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.