ACC 557 TUTOR Learn by Doing/acc557tutor.com ACC 557 TUTOR Learn by Doing/acc557tutor.com | Page 90

The comparative condensed balance sheets of Garcia Corporation are
presented below.
(a) Prepare a horizontal analysis of the balance sheet data for Garcia
Corporation using 2013 as a base.
(b) Prepare a vertical analysis of the balance sheet data for Garcia
Corporation in columnar form for 2014
Exercise 14-4
The comparative condensed income statements of Hendi Corporation
are shown below.
(a) Prepare a horizontal analysis of the income statement data for
Hendi Corporation using 2013 as a base. (Show the amounts of
increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Hendi
Corporation in columnar form for both years.
Exercise 14-13
Maulder Corporation has income from continuing operations of
$264,100 for the year ended December 31, 2014. It also has the
following items (before considering income taxes).
1.

An extraordinary loss of $79,600.

2.

A gain of $25,700 on the discontinuance of a division.

3.
A correction of an error in last year’s financial
statements that resulted in a $16,600 understatement of 2013 net
income.
Assume all items are subject to income taxes at a 33% tax rate.