TABLE 4-5 Balance Sheet, Sample Company Vertical Vertical Analysis 2013 Category 2012 Analysis 2012 2013 $ 7,000,000 8,000,000 15,000,000 $ 9,000,000 6,000,000 15,000,000 Current assets Total fixed assets Total assets $ 3,000,000 4,000,000 $ 1,000,000 4,000,000 Current liabilities Long term debt Owner's equity 8,000,000 10,000,000 Total liabilities & owner's equity $15,000,000 $15,000,000 TABLE 4-6 Sample Balance Sheet Horizontal 2012 2013 Analysis $ 7,000,000 8,000,000 15,000,000 $ 9,000,000 6,000,000 15,000,000 $ 1,000,000 4,000,000 Current assets Total fixed assets Total assets $ 3,000,000 4,000,000 Current liabilities Long-term debt Owner's equity 8,000,000 10,000,000 Total liabilities & owner's equity $15,000,000 $15,000,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You were not totally satisfied with the vertical analysis, so you now want to
run a horizontal analysis of this company. Complete Table 4–6. Perform a horizontal analysis on these accounts. Compare the changes in accounts, and
describe the changes that were beneficial or detrimental to this company in
one sentence.

TABLE 4-5 Balance Sheet, Sample Company
Vertical
Vertical
Analysis 2013
Category
2012
Analysis 2012
2013
$ 7,000,000
8,000,000
15,000,000
$ 9,000,000
6,000,000
15,000,000
Current assets
Total fixed assets
Total assets
$ 3,000,000
4,000,000
$ 1,000,000
4,000,000
Current liabilities
Long term debt
Owner's equity
8,000,000
10,000,000
Total liabilities & owner's equity
$15,000,000
$15,000,000
TABLE 4-6 Sample Balance Sheet
Horizontal
2012
2013
Analysis
$ 7,000,000
8,000,000
15,000,000
$ 9,000,000
6,000,000
15,000,000
$ 1,000,000
4,000,000
Current assets
Total fixed assets
Total assets
$ 3,000,000
4,000,000
Current liabilities
Long-term debt
Owner's equity
8,000,000
10,000,000
Total liabilities & owner's equity
$15,000,000
$15,000,000
Transcribed Image Text:TABLE 4-5 Balance Sheet, Sample Company Vertical Vertical Analysis 2013 Category 2012 Analysis 2012 2013 $ 7,000,000 8,000,000 15,000,000 $ 9,000,000 6,000,000 15,000,000 Current assets Total fixed assets Total assets $ 3,000,000 4,000,000 $ 1,000,000 4,000,000 Current liabilities Long term debt Owner's equity 8,000,000 10,000,000 Total liabilities & owner's equity $15,000,000 $15,000,000 TABLE 4-6 Sample Balance Sheet Horizontal 2012 2013 Analysis $ 7,000,000 8,000,000 15,000,000 $ 9,000,000 6,000,000 15,000,000 $ 1,000,000 4,000,000 Current assets Total fixed assets Total assets $ 3,000,000 4,000,000 Current liabilities Long-term debt Owner's equity 8,000,000 10,000,000 Total liabilities & owner's equity $15,000,000 $15,000,000
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