Instructions (a) identify and describe the three tools of financial statement an
ID: 2562571 • Letter: I
Question
Instructions (a) identify and describe the three tools of financial statement analysis. (three analysis on Schellhammer's current assets. b) Perform each of the types of IMET 18-2 using the following data from the comparative balance sheet of Goody Company, illustrate analysis. horizontal December 31, 2015 December 31, 2014 Accounts receivable Inventory Total assets $ 520,000 $ 840,000 $3,000,000 $ 400,000 $ 600,000 $2,500,000 AET 18-3 Using the same data presented above in IMET 183 for Goody Company, illustrate vertical analysis.Explanation / Answer
Answer:
Vertical analysis of Goody company
December-31-
2015
%
December-31-2014
%
Account receivable
520,000
17.33%
400,000
16.00%
Inventory
840,000
28.00%
600,000
24.00%
Total Assets
3,000,000
100.00%
2,500,000
100.00%
Working notes for the above answer is as under
December-31-
2015
December-31-2014
Account receivable
520,000/3,000,000
400,000/2,500,000
Inventory
840,000/3,000,000
600,000/2,500,000
Total Assets
3,000,000/3,000,000
2,500,000/2,500,000
December-31-
2015
%
December-31-2014
%
Account receivable
520,000
17.33%
400,000
16.00%
Inventory
840,000
28.00%
600,000
24.00%
Total Assets
3,000,000
100.00%
2,500,000
100.00%