Question

Please create a vertical and horizontal analysis of the following balance sheet.

	2009	2010
Assets
Current Asset
Cash	3278	1844
Accounts Receivable	6954	11807
Inventory	17417	9628
Fixed Asset
Plant & Equipment	144500	158700
Total Assets	172149	181979
Liabilities
Current Liabilities
Accounts Payables	9250	13446
Wages Payable	1110	650
Property & Tax Payables	3650	4124
Non-Current Liabilities
Long-Term Debt	75800	92800
Owners' Equity	82339	70959
Total Liabilities	172149	181979

Answer 1

Solution :

Horizental Analysis - Balance Sheet
Particulars	2010	2009	Increase (Decrease)	% change from 2009
Assets:
Current Assets:
Cash	$1,844.00	$3,278.00	-$1,434.00	-43.75%
Accounts receivables	$11,807.00	$6,954.00	$4,853.00	69.79%
Inventory	$9,628.00	$17,417.00	-$7,789.00	-44.72%
Fixed Assets:
Plant & Equipment	$158,700.00	$144,500.00	$14,200.00	9.83%
Total Assets	$181,979.00	$172,149.00	$9,830.00	5.71%
Liabilities:
Current liabilities:
Accounts Payable	$13,446.00	$9,250.00	$4,196.00	45.36%
Wages Payable	$650.00	$1,110.00	-$460.00	-41.44%
Property and tax payables	$4,124.00	$3,650.00	$474.00	12.99%
Non Current Liabilities:
Long term debt	$92,800.00	$75,800.00	$17,000.00	22.43%
Owner's Equity	$70,959.00	$82,339.00	-$11,380.00	-13.82%
Total Liabilities	$181,979.00	$172,149.00	$9,830.00	5.71%

Vertical Analysis - Balance Sheet
Particulars	2010	Percent - 2010	2009	Percentage - 2009
Assets:
Current Assets:
Cash	$1,844.00	1.01%	$3,278.00	1.90%
Accounts receivables	$11,807.00	6.49%	$6,954.00	4.04%
Inventory	$9,628.00	5.29%	$17,417.00	10.12%
Fixed Assets:				0.00%
Plant & Equipment	$158,700.00	87.21%	$144,500.00	83.94%
Total Assets	$181,979.00	100.00%	$172,149.00	100.00%
Liabilities:
Current liabilities:
Accounts Payable	$13,446.00	7.39%	$9,250.00	5.37%
Wages Payable	$650.00	0.36%	$1,110.00	0.64%
Property and tax payables	$4,124.00	2.27%	$3,650.00	2.12%
Non Current Liabilities:
Long term debt	$92,800.00	50.99%	$75,800.00	44.03%
Owner's Equity	$70,959.00	38.99%	$82,339.00	47.83%
Total Liabilities	$181,979.00	100.00%	$172,149.00	100.00%