Gross sales 300,580$ 315,487$ 101.73 4.96
Operating income 56,889 44,232 19.25 (22.25)
Interest 7,000 6,250 2.37 (10.71)
Earnings before taxes 49,889 37,982 16.89 (23.87)
TABLE 4-1 Sample Income Statement Data
Markadel Retail Store
Income Statement Data
From January 1 through December 31, 2012, and 2013
Horizontal
Analysis 2012-
2013 (%)
Account
Year 2012
Year 2013
Vertical
Analysis
2012 (%)
Markadel Retail Store
Balance Sheet Data
As of December 31, 2012 and 2013
Category
Horizontal
Analysis
2012-2013 (%)
Vertical
Analysis
2012 (%)
Year 2012
Year 2013
Fiscal Year Ended Dec. 31, 2013
OPERATING ACTIVITIES:
Net earnings 983$
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation 150
Accounts receivable (132)
Net cash provided by operating activities 149
Other assets (7)
Net cash used by investing activities (1,007)
FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 800
Net cash used by financing activities 800
CASH AND CASH EQUIVALENTS:
Consolidated Statement of Cash Flows
(in thousands)
TABLE 4-3 Moderately Large Corporation Consolidated Statement of Cash Flows
TABLE 4-4 Moderately Large Corporation Consolidated Balance Sheet
Fiscal Year Ended Dec. 31, 2013 Dec. 31, 2012
Current assets:
Cash and cash equivalents 1,369$ 1,427$
Accounts receivable, net 1,008 876
Prepaid expenses and other current assets 157 126
Deferred income taxes, net 44 40
Total current assets 4,066 2,950
Current liabilities:
Accounts payable 429$ 242$
Accrued compensation and related costs 104 98
Accrued taxes 132 141
Current portion of long-term debt 89 82
Total current liabilities 754 563
Long-term debt 2,630 1,830
Paid-in capital in excess of par 2,415 2,415
Retained earnings 1,222 241
(in thousands except share data)
ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
Vertical Vertical
Category 2012 Analysis 2012 2013 Analysis 2013
Current assets 7,000,000$ 9,000,000$
Total fixed assets 8,000,000 6,000,000
Total assets 15,000,000 15,000,000
Table 4-5 Balance Sheet, Sample Company
Current assets 7,000,000$ 9,000,000$
Total fixed assets 8,000,000 6,000,000
Total assets 15,000,000 15,000,000
Table 4-6 Sample Balance Sheet
2013
2012
Horizontal
Analysis
TABLE 4-7 Moderately Large Corporation Consolidated Statement of Earnings
Fiscal year ended: Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011
Net revenues
Cash Sales 2,888$ 2,751$ 2,456$
Subtotal operating expenses 2,052 1,913 1,687
Operating income 1,522 1,691 1,616
Interest expense 10 11 11
Earnings before income taxes 1,512 1,680 1,605
Income taxes 529 588 562
(in thousands, except earning per share)
Consolidated Statement of Earnings
TABLE 4-8 Financial Statements for Sam‘s Sandwich Delivery
Revenues
Retail Sales 68,283$
Wholesale Sales 104,417
Total Revenues 172,700$
Net Profit 8,614$
Assets
Current Assets
Change Fund 569$
Cash in Bank-Checking 8,612
Total Fixed Assets 20,351$
Total Assets 48,604$
Current Liabilities
Accounts Payable Trade 6,208
Stockholder’s Equity
Profit Loss (Income Statement) for
Six Months Ending June 30, 2013
Common Stock 83,081
Retained Earnings (72,376)
Net Profit/Loss 8,614
Total Equity 19,319
Total Liabilities and Equity 48,604$
TABLE 4-9 Income Statement for Mosbacher Insurance Agency
Category
Amount
Revenue
650,000$
Operating Expenses
Salary/Commission
150,000
Misc
20,000
Total Operating Expenses
250,000$
Operating Income 400,000$
Taxes
75,000$
Net Income After Taxes
325,000$
Mosbacher Insurance Agency
Abbreviated Average Income Statement
January 1 to December 31
Vertical Vertical
Category 2012 Analysis 2012 2013 Analysis 2013
Current assets 7,000,000$ 46.67% 9,000,000$ 60.00%
Total fixed assets 8,000,000 53.33% 6,000,000 40.00%
Total assets 15,000,000 100.00% 15,000,000 100.00%
TABLE 4-5 Balance Sheet, Sample Company
Current assets 7,000,000$ 9,000,000$ 28.57%
Total fixed assets 8,000,000 6,000,000 -25.00%
Total assets 15,000,000 15,000,000 0.00%
TABLE 4-6 Sample Balance Sheet
2012
2013
Horizonta
l Analysis
TABLE 4-4 Moderately Large Corporation Consolidated Balance Sheet
Fiscal Year Ended Dec. 31, 2013 Dec. 31, 2012
Horizontal
Analysis
Current assets:
Cash and cash equivalents 1,369$ 1,427$ -4.04%
Accounts receivable, net 1,008 876 15.03%
Prepaid expenses and other current assets 157 126 24.54%
Deferred income taxes, net 44 40 9.11%
Current liabilities:
Accounts payable 429$ 242$ 77.22%
Accrued compensation and related costs 104 98 6.34%
Accrued taxes 132 141
-6.21%
Current portion of long-term debt 89 82 8.54%
Paid-in capital in excess of par 2,415 2,415 0.00%
Retained earnings 1,222 241 407.05%
(in thousands except share data)
ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
TABLE 4-4 Moderately Large Corporation Consolidated Balance Sheet
Fiscal Year Ended Dec. 31, 2013 Dec. 31, 2012
Vertical
Analysis
2012
Current assets:
Cash and cash equivalents 1,369$ 1,427$ 26.44%
Accounts receivable, net 1,008 876 16.23%
Inventories 1,489 481 8.91%
Prepaid expenses and other current assets 157 126 2.33%
Current liabilities:
Accounts payable 429$ 242$ 4.48%
Accrued compensation and related costs 104 98 1.82%
Paid-in capital in excess of par 2,415 2,415 44.74%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 7,371$ 5,399$ 100.02%
(in thousands except share data)
ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
TABLE 4-7 Moderately Large Corporation Consolidated Statement of Earnings
Fiscal year ended: Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011
Horizontal
Analysis
2011-12
Net revenues
Depreciation 150 135 122 11.11%
General and administrative expenses 489 479 361 32.69%
Subtotal operating expenses 2,052 1,913 1,687 13.38%
Operating income 1,522 1,691 1,616 4.64%
Interest expense 10 11 11 0.00%
(in thousands, except earning per share)
TABLE 4-8 Financial Statements for Sam’s Sandwich Delivery
Vertical
Analysis
Revenues
Retail Sales 68,283$ 39.54%
Net Profit 8,614$ 4.99%
Assets
Current Assets
Less: Accum Depreciation 67,725 139.34%
Net Equipment 568$ 1.17%
Transportation Equipment 31,168 64.13%
Less: Accum Depreciation 11,571 23.81%
Total Liabilities 29,285$ 60.25%
Stockholder’s Equity
Common Stock 83,081 170.93%
Retained Earnings (72,376) -148.91%
Net Profit/Loss 8,614 17.72%
Total Equity 19,319$ 39.75%
Balance Sheet as of June 30, 2013
Profit Loss (Income Statement) for Six Months Ending June 30, 2013
Total Liabilities and Equity 48,604$ 100.00%
TABLE 4-9 Income Statement for Mosbacher Insurance Agency
Category
Vertical
Analysis
Revenue
650,000$ 100.00%
Operating Expenses
Salary/Commission
150,000 23.08%
Phone, Computer, Utilities
10,000 1.54%
Postage
10,000 1.54%
25,000 3.85%
20,000 3.08%
15,000 2.31%
Mosbacher Insurance Agency
Abbreviated Average Income Statement
January 1 to December 31
Amount in Dollars