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E. On May 31, 2012 Sabre Company had a cash balance per books of36781 50. The bank statement tom New York State Bank on that date showed a balance of$6,404.60. Acomparison of the statement with the cash accountrevealed the folowing tacts: 1. The statement included a debit memo of $40forthe printing of additional company checks 2. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15 The bank credited Sabre Company for the correct amount. Outstanding checks at May 31 totaled S57625. Deposits in transit were $1916.15. 4 On May 18, the company issued check No.1181 for S68StoCarol Stillsonaccount.The check. which cleared the bank in May, was incorrectly journalized and posted by Sabre Company for S658. 5. AS2,500 note receivable was collected by the bank for Sabre Company on May 31 plus SR0 interest. The bank charged a collection feeofS20. No interest has been accrued on the note. 6. Included with the cancelled checks was a check issued by Rapier Company toTom Lujak for S800 that was incorrectly charged to Sabre Company by the bank. On May 31, the bank statement showed an NSF charge of S680 for a check issued by Jo Bennett, a customer. Sabre Company on account. to ab 10 1. Prepare the bank reconciliation atMay 31, 2012. Background Managers must have the ability to analyze financial statements. Toprovide you with the opportunity to experience a comprehensive analysis, this assignment Mequies you to perform verticalanalysis (common-sizing) and horizontal (tend analysis of an Income Statement and a Balance Sheet, calculate liquidity, activity, protitability, and coverage ratos, and, finaly,to interpret the results. This company has no Preferred Stock and pays no dividends. F.The 2008-2010 Income Statements and Balance Sheets forABC Company have been entered into the A1 Workbook, on tabs 11 through 14. Tab 11 1, Enter the necessaryformulas to perlomm vertical analysis (common-sizing) of he income Statements. Tab 12 1. Enter the necessary formulas to perform horizontal (trend) analysis of the Income Statements. 1. Enterthe necessary formulas to perform vertical analysis (common-sizing) of the Balance Sheets. Tab 14 1. Enter the necessary formulas to perform horizontal (tend) analysis of the Balance Sheets. Tab 15 1. Enter the appropriate data needed to complete the Liquidity, Activity, Profitability, and Coverage ratos included on he sheet. 2. Enter the necessary formulas to perform horizontal(rend analysis of the Liquidity. Activity, Proftabilly and coverage ratios. Tab 16 1. Based on the results of the horizontal (trend analysis of the Liquidity,Activity, Profitabilty, and Coverageratos on Tab 15, assess ABC Company's overalfinancial performance, based on the Income Statement, Balance Sheet, and Rato analyseson Tab 15

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