60.1K

Verified Solution

Link Copied!

1.Vertical Analysis

Income statement information for Einsworth Corporation follows:

Sales	$389,000
Cost of goods sold	101,140
Gross profit	287,860

Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number.

Einsworth Corporation
Vertical Analysis of the Income Statement
	Amount	Percentage
Sales	$389,000	%
Cost of goods sold	101,140	%
Gross profit	$287,860	% Horizontal Analysis The comparative temporary investments and inventory balances of a company follow. Current Year Previous Year Accounts payable $45,250 $36,200 Long-term debt 40,734 55,800 2.Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Amount of Change Increase/Decrease Percentage Accounts payable $ % Long-term debt $ %

3.

Current Position Analysis

The following items are reported on a company's balance sheet:

Cash	$370,900
Marketable securities	289,800
Accounts receivable (net)	315,300
Inventory	183,000
Accounts payable	610,000

Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

a. Current ratio
b. Quick ratio

Answer & Explanation Solved by verified expert

See Answer