Question

1 HORIZONTAL ANALYSIS INSTRUCTIONS: Prepare a horizontal analysis of the income statement using 2018 as a base. Neiman Corp. Comparative Balance Sheet For the years ended December 31 2019 2018 Assets Current Assets 360 300 Plant Assets 640 500 Total Assets 1,000 800 Liabilities & Stockholders' Equity Current liabilities 150 120 Long-term debt 240 160 Common stock 350 320 Retained earnings 260 200 Total liabilities & stockholders' equity 1,000 800

2

VERTICAL ANALYSIS
INSTRUCTIONS: Prepare a vertical analysis of the income statement.
	Neiman Corp.
	Comparative Balance Sheet
	For the years ended December 31
	2019		2018
Assets
Current Assets	360		300
Plant Assets	640		500
Total Assets	1,000		800
Liabilities & Stockholders' Equity
Current liabilities	150		120
Long-term debt	240		160
Common stock	350		320
Retained earnings	260		200
Total liabilities & stockholders' equity	1,000		800

Answer 1

Ans. 1	Nelman Corp.
	Comparative Balance Sheet
	For the Years Ended December 31
		2019	2018	Amount change	Percentage change
	Assets
	Current assets	$360	$300	$60	20.0%
	Plant assets	$640	$500	$140	28.0%
	Total assets	$1,000	$800	$200	25.0%
	Liabilities and Stockholder's Equity
	Current liabilities	$150	$120	$30	25.0%
	Long term debt	$240	$160	$80	50.0%
	Common stock	$350	$320	$30	9.4%
	Retained eanings	$260	$200	$60	30.0%
	Total Liabilities and stockholder's equity	$1,000	$800	$200	25.0%
	Change in amount = Particular amount of current year 2019 - Particular amount of previous year 2018
	Change in percentage = Change in amount / particular amount of base (2018) or previous year * 100
Ans. 2	Nelman Corp.
	Comparative Balance Sheet
	For the Years Ended December 31
		2019	%	2018	%
	Assets
	Current assets	$360	36.00%	$300	37.50%
	Plant assets	$640	64.00%	$500	62.50%
	Total assets	$1,000	100.00%	$800	100.00%
	Liabilities and Stockholder's Equity
	Current liabilities	$150	15.00%	$120	15.00%
	Long term debt	$240	24.00%	$160	20.00%
	Common stock	$350	35.00%	$320	40.00%
	Retained eanings	$260	26.00%	$200	25.00%
	Total Liabilities and stockholder's equity	$1,000	100.00%	$800	100.00%
	*Calculations for Vertical Balance Sheet:
	Amount is percentage from assets side =   Particular amount from assets side / Total assets * 100
	Amount is percentage from liabilities side =   Particular amount from liability side / Total liabilities and owner's equity * 100