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This is a comprehensive problem all contained on this spreadsheet tab. You are to prepare a cash flow statement, a vertical analysis, a horizontal analysis, and some ratio calculations. Scroll down the spreadsheet to complete each part.

Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended 12/31/2015.
They have completed the balance sheet and income statement as shown.

Philadelphia Widget Corporation
Income Statement
For the year ended 12/31/2015

Revenue		$ 1,235,000
Cost of Goods Sold		806,656
Gross Profit		428,344

Administrative Expenses:
Salaries	212,450
Rent	82,500
Depreciation	24,800
Total Administrative Expense		319,750
Operating Profit		108,594

Gain on Sale of Equipment		4,500
Interest Expense		(42,115)
Net Income		$ 70,979



Philadelphia Widget Corporation
Balance Sheet
As of 12/31/2015, 12/31/2014, and 12/31/2013

	2015		2014		2013
Cash		119,411		89,564		105,644
Accounts Receivable		85,455		83,118		78,400
Inventory		41,300		48,560		62,600
Prepaid Expenses		14,500		18,100		24,000
Total Current Assets		260,666		239,342		270,644

Land		50,000		50,000		50,000
Buildings and Equipment	182,450		172,450		166,800
Accumulated Depreciation	78,900	103,550	62,600	109,850	54,580	112,220

Total Assets		$ 414,216		$ 399,192		$ 432,864


Accounts Payable		62,525		51,480		45,200
Wages payable		4,500		4,500		1,500
Unearned Revenue		3,000		-		-
Current Portion of Long-Term Debt		50,000		50,000		50,000
Total Current Liabilities		120,025		105,980		96,700

Long-Term Debt		175,000		225,000		275,000

Common Stock, 3500 shares outstanding	35,000		35,000		35,000
Retained Earnings	84,191		33,212		26,164
Total Stockholders' Equity		119,191		68,212		61,164

Total Liabilities and Equity		$ 414,216		$ 399,192		$ 432,864




REQUIRED:
A. Prepare a Statement of Cash Flow using the indirect method for 2015 using the above statements and the following additional information:
1. Equipment costing $30,000 was purchased in 2015.
2. Equipment having an original cost of $20,000 and accumulated depreciation of $8,500 was sold for $16,000 during 2015.
3. A dividend of $20,000 was declared and paid in 2015.
B. Prepare a vertical analysis (1 year) of the income statement above and a horizontal analysis (2 years) of the balance sheet.
C. Calculate the ratios based on 12/31/2015 numbers.

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acc_221_journal_including-vertical_n_horizontal.xlsx