Financial Analysis Questions - Horizontal and Vertical Analysis
Horizontal Analysis for Balance Sheet Problem 1 -
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DEF Corporation Balance Sheet 31-Dec-15
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2014
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2013
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Difference
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% of Difference
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Assets:
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Current Assets:
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Cash and cash equivalents
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300,250
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248,123
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Accounts receivable
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110,000
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105,000
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Short-term investments
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65,000
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59,000
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Inventories
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54,000
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56,000
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Other current assets
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10,000
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23,000
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Total current assets
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539,250
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491,123
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Property, plant & Equipment
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350,000
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325,000
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Less: Accumulated Depreciation
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10,250
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12,000
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Net Property, plant & Equipment
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339,750
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313,000
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Long-term Investments
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228,124
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447,654
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Total Assets
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928,124
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1,097,654
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Exercise - In excel enter the information from this slide and calculate the difference and % of difference.
Vertical Analysis Assessment Problem 2 -
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DEF Corporation Income Statement 31-Dec-15
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2014
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Percent
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2013
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Percent
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Difference
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Revenue
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Sales revenue
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75,000
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72,500
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Less: Sales Return/Allowance
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10,000
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8,500
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Net Sales
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65,000
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64,000
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Cost of goods sold
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Purchases
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3,300
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2,155
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Delivery charges
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500
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480
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Cost of goods sold
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3,800
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2,635
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Gross sales Profit (Loss)
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61,200
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61,365
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Expenses
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Rent
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4500
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4325
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Utilities
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800
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425
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Wages
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4000
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3750
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Fuel
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600
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525
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Total expenses
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9600
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9025
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Net Operating Income
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$1,600
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$2,340
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Exercise - In excel take the percent of each line item to sales (100%) and then the difference from the 2014 to 2013.
Word/Page Count: 250.
Formatting & Referencing: APA.
Attachment:- Assignment.rar