Required:
Using the comparative income statement, prepare a horizontal analysis of all items on the income statement for years displayed.
Prepare a vertical analysis of all asset items on the comparative balance sheet for these years.
Prepare a horizontal analysis of all items on the comparative balance sheet for the years shown.
Calculate the rate of net income on sales for these two years.
Compute the rate of net income on stockholders’ equity for 20X2 and 20X1. TAG, Inc., uses the average of the beginning and ending balance for common stockholders’ equity. Retained earnings on December 31, 20X0, was $0 as company began operations in 20X1.
Compute the rate of net income before income taxes on total assets for each of these two years. Base your calculation on total ending assets each year.
Calculate the earnings per share of common stock for each year.