Using the Following Selected Items from the Comparative Balance Sheet

question 12

Essay

Using the following selected items from the comparative balance sheet of Kato Company, illustrate horizontal and vertical analysis. $\begin{array}{lrr}&\text { December 31, } 2014&\text { December 31, } 2013\\ \text { Accounts Receivable } & \$ 720,000 & \$ 630,000 \\\text { Inventory } & 450,000 & 360,000 \\\text { Total Assets } & 3,200,000 & 3,000,000\end{array}$

---

Definitions:

Product

The result of a process or chemical reaction, typically described in the context of what is synthesized or created.

Reaction

A process in which chemical substances interact, leading to the reorganization of their atomic or molecular structure.

Organic Product

A compound derived from living organisms or their byproducts, often used in reference to naturally produced chemicals.

Reaction

A process in which substances interact to form new substances with different chemical properties.