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Horizontal and Vertical Analysis Selected data from the financial statements of Jones Hardware Company follows. 2019...

Horizontal and Vertical Analysis

Selected data from the financial statements of Jones Hardware Company follows.

2019 2018
Accounts receivable $63,600 $38,000
Merchandise inventory 12,300 16,000
Total assets 450,000 380,000
Net sales 380,000 270,000
Cost of goods sold 178,000 210,000

Required:

1. Calculate by how much accounts receivable, merchandise inventory, total assets, net sales, and cost of goods sold increased or decreased in dollar terms from 2018 to 2019.

Accounts receivable $
Merchandise inventory $
Total assets $
Net sales $
Cost of goods sold $

2. Indicate what happened from 2018 to 2019 to accounts receivable and merchandise inventory as a percentage of total assets. Round to the nearest whole percent.

Accounts receivable   from % in 2018 to % in 2019.
Merchandise inventory   from % in 2018 to % in 2019.

Indicate what happened from 2018 to 2019 to cost of goods sold as a percentage of net sales (rounded to the nearest whole percent).

Cost of goods sold   from % in 2018 to % in 2019.

Solutions

Expert Solution

1.)

2)


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