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(1) Financial information for Nealon Inc. is presented below.
December 31, 2017 December 31, 2016
Current assets $140,000 $110,000
Plant assets (net) 440,000 360,000
Current liabilities 95,000 75,000
Long-term liabilities 165,000 100,000
Common stock, $1 par 180,000 120,000
Retained earnings 140,000 175,000
Instructions
(a) Prepare a schedule showing a horizontal analysis for 2017 using 2016 as the base year. 7 points
(b) What is the primary use of horizontal analysis? 3 points
