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Using the Following Selected Items from the Comparative Balance Sheet

Question 184

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Using the following selected items from the comparative balance sheet of Ames Company illustrate horizontal and vertical analysis.  December 31, 2015 December 31, 2014 Accounts Receivable $960,000$600,000 Inventory 975,000780,000 Total Assets 4,000,0002,500,000\begin{array}{lcc}&\text { December 31, } 2015& \text { December 31, } 2014\\\text { Accounts Receivable } & \$ 960,000 & \$ 600,000 \\\text { Inventory } & 975,000 & 780,000 \\\text { Total Assets } & 4,000,000 & 2,500,000\end{array}

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