Question

Perform a vertical analysis and Perform a horizontal analysis on the following information providing both the...

Perform a vertical analysis and Perform a horizontal analysis on the following information providing both the dollar amount and percentage change:

2018 2017

Cash $500,000 $200,000

Acc Rec 900,000 800,000

Inventory 700,000 500,000

Long-term assets 2,200,000 2,500,000

Total assets $4,300,000 $4,000,000

Business   Accounting   
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Answer #1

Vertical analysis :

2018 2017 Amount increase (decrease) Percent increase (decrease)
Cash 500000 200000 300000 150%
Acc Rec 900000 800000 100000 12.5%
Inventory 700000 500000 200000 40%
Long term assets 2200000 2500000 -300000 -12%
Total assets 4300000 4000000 300000 7.5%

Horizontal analysis :

2018 Percent 2018 2017 Percent 2017
Cash 500000 11.63% 200000 5%
Acc Rec 900000 20.93% 800000 20%
Inventory 700000 16.28% 500000 12.5%
Long term assets 2200000 51.16% 2500000 62.5%
Total assets 4300000 100% 4000000 100%
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