Mira sorb Company Balance Sheet 2014 2015 Horizontal Analysis Vertical Analysis Assets $ % % Cash $ 40,000 $ 35,000 $ (5,000) -12.5% 9% 10% Marketable Securities 15000 20000 $ 5,000 33.3% 4% 6% Account Receivable ( Net) 50000 20000 $ (30,000) -60.0% 12% 6% Inventory 60000 55000 $ (5,000) -8.3% 14% 16% Prepaid Assets 18000 12000 $ (6,000) -33.3% 4% 4% Property, Plant & Equipment 242000 200000 $ (42,000) -17.4% 57% 58% Total Assets $ 425,000 $ 342,000 $ (83,000) 100% 100% Liabilities & Stockholders Equity Current liabilities $ 65,000 $ 50,000 $ (15,000) -23.1% 15% 15% Long- Term Liabilities 115000 105000 $ (10,000) -8.7% 27% 31% Stockholder\'s Equity 245000 187000 $ (58,000) - 23.7% 58% 55% Total Liabilities & Stockholders Equity $ 425,000 $ 342,000 $ (83,000) 100% 100% Mira sorb Company Income Statement 2014 2015 Horizontal Analysis Vertical Analysis $ % 2014 2015 Net Sales $ 275,000 175000 - 100000 -36.4% 100% 100% Cost of goods Sold 130000 90000 -40000 -30.8% 47% 51% Gross Margin 145000 85000 -60000 53% 49% Selling & Administrative expenses 15000 9000 -6000 -40.0% 5% 5% Interest expenses 9000 15000 6000 66.7% 3% 9% Income tax expenses 27000 6000 -21000 -77.8% 10% 3% Net Income $ 94,000 $ 55,000 $ (39,000) 34% 31% Calculate of 2015 2015 Profit Margin = Net income/Net sales 31% Accounts receivable Turnover = Net Sales/(Beginning Accounts Receivable + Ending Accounts Receivable) / 2 5 times Inventory Turnover = Cost of goods sold/Avg. inventory 1.6 times Return on Assets = Net Income/ Avg.Total assets 0.14 times Asset Turnover = Net Sales/ Avg.Total assets 0.46 times Current Ratio = Current Assets/Current liabilities 2.6 Solution Mira sorb Company Balance Sheet 2014 2015 Horizontal Analysis Vertical Analysis Assets $ % % Cash $ 40,000 $ 35,000 $ (5,000) -12.5% 9% 10% Marketable Securities 15000 20000 $ 5,000 33.3% 4% 6% Account Receivable ( Net) 50000 20000 $ (30,000) -60.0% 12% 6% Inventory 60000 55000 $ (5,000) -8.3% 14% 16% Prepaid Assets 18000 12000 $ (6,000) -33.3% 4% 4% Property, Plant & Equipment 242000 200000 $ (42,000) -17.4% 57% 58% Total Assets $ 425,000 $ 342,000 $ (83,000) 100% 100% Liabilities & Stockholders Equity Current liabilities $ 65,000 $ 50,000 $ (15,000) -23.1% 15% 15% Long- Term Liabilities 115000 105000 $ (10,000) -8.7% 27% 31% Stockholder\'s Equity 245000 187000 $ (58,000) - 23.7% 58% 55% Total Liabilities & Stockholders Equity $ 425,000 $ 342,000 $ (83,000) 100% 100% Mira sorb Company Income Statement 2014 2015 Horizontal Analysis Vertical Analysis $ % 2014 2015 Net Sales $ 275,000 175000 - 100000 -36.4% 100% 100% Cost of goods Sold 130000 90000 -40000 -30.8% 47% 51% Gross Margin 145000 85000 -60000 53% 49% Selling & Administrative expenses 15000 9000 -6000 -40.0% 5% 5% Interest expenses 9000 15000 6000 66.7% 3% 9% Income tax expenses 27000 6000 -21000 -77.8% 10% 3% Net Income $ 94,000 $ 55,000 $ (39,000) 34% 31% Calculate of 2015 2015 Profit Margin = Net income/Net sales 31% Accounts receivable Turnover = Net Sales/(.

1. Mira sorb Company Balance Sheet 2014 2015 Horizontal Analysis Vertical
Analysis Assets $ % % Cash $ 40,000 $ 35,000 $ (5,000) -12.5% 9% 10%
Marketable Securities 15000 20000 $ 5,000 33.3% 4% 6% Account Receivable ( Net)
50000 20000 $ (30,000) -60.0% 12% 6% Inventory 60000 55000 $ (5,000) -8.3% 14%
16% Prepaid Assets 18000 12000 $ (6,000) -33.3% 4% 4% Property, Plant & Equipment
242000 200000 $ (42,000) -17.4% 57% 58% Total Assets $ 425,000 $ 342,000
$ (83,000) 100% 100% Liabilities & Stockholders Equity Current liabilities
$ 65,000 $ 50,000 $ (15,000) -23.1% 15% 15% Long- Term Liabilities 115000
105000 $ (10,000) -8.7% 27% 31% Stockholder's Equity 245000 187000 $ (58,000) -
23.7% 58% 55% Total Liabilities & Stockholders Equity $ 425,000 $ 342,000 $
(83,000) 100% 100% Mira sorb Company Income Statement 2014 2015
Horizontal Analysis Vertical Analysis $ % 2014 2015 Net Sales $ 275,000 175000 -
100000 -36.4% 100% 100% Cost of goods Sold 130000 90000 -40000 -30.8% 47% 51%
Gross Margin 145000 85000 -60000 53% 49% Selling & Administrative expenses 15000
9000 -6000 -40.0% 5% 5% Interest expenses 9000 15000 6000 66.7% 3% 9%
Income tax expenses 27000 6000 -21000 -77.8% 10% 3% Net Income $ 94,000 $
55,000 $ (39,000) 34% 31% Calculate of 2015 2015 Profit Margin =
Net income/Net sales 31% Accounts receivable Turnover = Net Sales/(Beginning
Accounts Receivable + Ending Accounts Receivable) / 2 5 times Inventory
Turnover = Cost of goods sold/Avg. inventory 1.6 times Return on Assets = Net
Income/ Avg.Total assets 0.14 times Asset Turnover = Net Sales/ Avg.Total assets
0.46 times Current Ratio = Current Assets/Current liabilities 2.6
Solution
Mira sorb Company Balance Sheet 2014 2015 Horizontal Analysis Vertical
Analysis Assets $ % % Cash $ 40,000 $ 35,000 $ (5,000) -12.5% 9% 10%
Marketable Securities 15000 20000 $ 5,000 33.3% 4% 6% Account Receivable ( Net)
50000 20000 $ (30,000) -60.0% 12% 6% Inventory 60000 55000 $ (5,000) -8.3% 14%
16% Prepaid Assets 18000 12000 $ (6,000) -33.3% 4% 4% Property, Plant & Equipment
242000 200000 $ (42,000) -17.4% 57% 58% Total Assets $ 425,000 $ 342,000
$ (83,000) 100% 100% Liabilities & Stockholders Equity Current liabilities
$ 65,000 $ 50,000 $ (15,000) -23.1% 15% 15% Long- Term Liabilities 115000
105000 $ (10,000) -8.7% 27% 31% Stockholder's Equity 245000 187000 $ (58,000) -
23.7% 58% 55% Total Liabilities & Stockholders Equity $ 425,000 $ 342,000 $
(83,000) 100% 100% Mira sorb Company Income Statement 2014 2015
Horizontal Analysis Vertical Analysis $ % 2014 2015 Net Sales $ 275,000 175000 -

2. 100000 -36.4% 100% 100% Cost of goods Sold 130000 90000 -40000 -30.8% 47% 51%
Gross Margin 145000 85000 -60000 53% 49% Selling & Administrative expenses 15000
9000 -6000 -40.0% 5% 5% Interest expenses 9000 15000 6000 66.7% 3% 9%
Income tax expenses 27000 6000 -21000 -77.8% 10% 3% Net Income $ 94,000 $
55,000 $ (39,000) 34% 31% Calculate of 2015 2015 Profit Margin =
Net income/Net sales 31% Accounts receivable Turnover = Net Sales/(Beginning
Accounts Receivable + Ending Accounts Receivable) / 2 5 times Inventory
Turnover = Cost of goods sold/Avg. inventory 1.6 times Return on Assets = Net
Income/ Avg.Total assets 0.14 times Asset Turnover = Net Sales/ Avg.Total assets
0.46 times Current Ratio = Current Assets/Current liabilities 2.6