REQUIRED:• Vertical Analysis• Financial Ratio HORIZONTAL ANALYSIS2345 Sales6 Cost of Goods Sold7 Gross Margin8 Less: Operating Expenses9 Operating Profit10 Less: Interest Expense11 Net Income Before Tax12 Tax13 Net income After Tax14161718 Assets19 Current Assets:202122232425 Noncurrent Assets:262728 Total Assets2930 Liabilities and Equity31 Current Liabilities3233 Noncurrent Liabilties3435 Total Liabilities36 Shareholder's Equity37383940 Total Shareholders Equity41 Total Liabilities and Equity42Statement of Comprehensive Income20142013CashAccounts ReceivableInventoryPrepaid ExpenseTotal Current AssetsCurrent LiabilitiesBonds Payable10,000,0006,500,0003,500,0002,630,000870,000Property, Plant and EquipmentTotal Noncurrent Asset120,000750,000225,000525,000Statement of Financial PositionPreference Shares CapitalOrdinary Share CapitalRetained Earnings7,500,0004,500,0003,000,0002,280,000720,000120,000600,000180,000420,0002014100,000750,0001,500,00050,0002,400,0002,585,0002,585,0004,985,0001,250,0001,000,0002,250,000750,000500,0001,485,0002,735,0004,985,000Difference2,500,0002,000,000500,000350,000150,0002013 Difference200,000-400,000600,00050,0001,250,000150,00045,000105,000500,0001,000,0001,500,0002,700,000 - 115,0002,700,000115,0003,950,0001,035,000750,000500,000100,000350,000900,0001,200,0002,450,0003,950,0001,150,000750,000750,000.285,000285,0001,035,000%33.33%44.44%16.67%15.35%20.83%0.00%25.00%25.00%25.00%%-50.00%87.50%150.00%0.00%92.00%-4.26%-4.26%26.20%150.00%0.00%50.00%0.00%0.00%23.75%11.63%26.20% Value Plus, Inc. was organized several years ago to develop and marketcomputer software programs. The company is small but growing and you areconsidering the purchase of some of its ordinary shares as an investment. Thefollowing data on the company is available for the past two years:SalesCost of Goods SoldGross MarginLess: Operating ExpensesOperating ProfitLess: Interest ExpenseNet Income Before TaxTaxNet income After TaxAssetsCurrent Assets:CashAccounts ReceivableInventoryPrepaid ExpenseTotal Current AssetsNoncurrent Assets:Total AssetsProperty, Plant and EquipmentTotal Noncurrent AssetLiabilities and EquityCurrent LiabilitiesStatement of Comprehensive Income2014Current LiabilitiesNoncurrent LiabiltiesBonds PayableTotal LiabilitiesShareholder's EquityTotal Shareholders EquityTotal Liabilities and EquityPreference Shares CapitalOrdinary Share CapitalRetained Earnings10,000,0006,500,0003,500,0002,630,000870,000120,000750,000Statement of Financial Position225,000525,0002014100000750000150000050000240000025850002585000498500012500001000000225000075000050000014850002735000498500020137,500,0004,500,0003,000,0002,280,000720,000120,000600,000180,000420,000201320000040000060000050000125000027000002700000395000050000010000001500000750000500000120000024500003950000Prepare the following financial statement analysis tool:1. Horizontal Analysis- DONE/PROVIDED2. Vertical Analysis3. Financial Ratio

Vertical analysis is the analysis which has been analysed on the financial statements by the company…

Answered: Vertical Analysis • Financial Ratio

Business

Accounting

Vertical Analysis • Financial Ratio

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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