Need help preparing vertical analysis in accounting? - Finance & Business
Need help preparing vertical analysis in accounting?
1 year ago
I have the formula but I can't work it out.Vertical analysis. Mary Lynn Corporation has been operating for several years. Selected data from the 20X1 and 20X2 financial statements follow.20X2 20X1Current Assets $ 76,000 $ 80,000Property, Plant, and Equipment (net) 99,000 90,000Intangibles 25,000 50,000Current Liabilities 40,800 48,000Long-Term Liabilities 143,000 160,000Stockholders’ Equity 16,200 12,000Net Sales 500,000 500,000Cost of Goods Sold 332,500 350,000Operating Expenses 93,500 85,000Prepare a vertical analysis for 20X1 and 20X2.

TAG:accounting statements vertical several
Best Answer
Prepare a vertical analysis for 20X1 and 20X2.
Horizontal Analysis ............. ...........20x2 ........20x1...Difference.......%Change
Current Assets ............... ............$ 76,000 ...$ 80,000 .....- 4,000 ........ ...-5%*
Property, Plant, and Equipment (net) 99,000 .....90,000 .......9,000 ....... ....10%
Intangibles ............... ............. .......25,000...... 50,000 ....- 25,000 ..... ...- 50%
Total Assets .......... ......... ..........$200,000 ...$220,000 .... 20,000 .........-9.09%
Current Liabilities ............ ...............40,800 ......48,000 ....- 7,200 ..........-15%
Long-Term Liabilities ............ .........143,000 ....160,000 .. - 17,000 .........-10.63%
Total Liabilities ........ ........... .........$183,800 .$208,000 ...-24,200 .........- 11.63%
Stockholders’ Equity .......... ............ .16,200 .....12,000 ......4,200 ..........35%
Total Liabilities and SE ...... ........ ...$200,000 ..$220,000 ..-20,000 .........-9.09%

Net Sales ......... .......... .......... .......$500,000 .$500,000 ...... .....0
Cost of Goods Sold .............. .......... .332,500 .$350,000 ...-17,500 ....... ...-5%
Gross profit ............ ............ ..........$167,500..$150,000 .....17,500 ..........11.67%
Operating Expenses .......... ........ .....93,500 .....85,000 ......8,500 ........ ....10%
Net Income ............ ............ ...........$74,000....$65,000 .....9,000 ..... ........13.85%

*(4,000) / 80,000 = -5%
Other Answers
1#
THE ANSWER DISPLAYED FOR THIS PROBLEM ON THIS PAGE IS WRONG.THE FORMULA FOR VERTICAL IS AMOUNT / PREVIOUS YEAR OR(BASE YEAR) X 100. THE ANSWER IS WRONG BECAUSE THE PREVIOUS PERSON POSTED A HORIZONTAL ANALYSIS:present year - previous year x 100...SO THE ANSWER DISPLAYED IS WRONG CAUSE THEY DID HORIZONTAL AND NOT VERTICAL !!
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