In: Finance
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.