1. Condensed data taken from the ledger of Collins Company at December 31, 2006, and 2007, are as follows:

2007 2006

Current assets $ 200,000 $ 180,000

Property, plant and equipment 450,000 400,000

Intangible assets 20,700 30,000

Current liabilities 70,000 80,000

Long-term liabilities 200,000 250,000

Common Stock 275,000 200,000

Retained Earnings 125,700 80,000

Prepare a comparative balance sheet, with horizontal analysis, for December 31. 2006 and 2007. (Round percents to one decimal point.)

2. Revenue and expense data for Wilson Company are as follows:

2006 2005

Administrative expenses $ 24,750 $ 18,000

Cost of goods sold 487,500 375,000

Income Tax 15,000 12,000

Net sales 750,000 600,000

Selling expenses 182,500 154,800

(a) Prepare a comparative income statement, with vertical analysis, stating each item for both 2006 and 2005 as a percent of sales.

(b) Comment upon the significant changes disclosed by the comparative income statement.

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Sorry was not done yet, wanted to post the assignment first before I give my answers.

1.
Current assets 11.1%
Property, plant & equipment 12.5%
Intangible assets (31%)
Current liabilities (12.5%)
Long-term liabilities (20%)
Common Stock 37.5%
Retained Earnings 57.1%

2.net sales 750,000 100% 600,000 100%
Cost of Gods sold 487,500 65% 375,000 62.5%
Gross Profit 262,500 35% 225,000 37,5%
Selling exp 182,500 24,3% 154,800 25,8%
Admin exp 24,750 3,3% 18,000 3%
Total operating exp 207,250 27,6% 172,800 28,8%
Income from operat. 55,250 7,4% 52,200 8,7%
Income Tax exp 15,000 2% 12,000 2%
Net Income 40,250 5,4% 40,200 6,7%

I just don't understand b)

Please verify if I did understand everything and I did it all right! Thanks!