PICAR, JANINE ARIOLA.

Fairmart Corp
Balance Sheet
2018 2019 CHANGES
ASSETS
Cash 28,000.00 13,000.00 -15,000.00
Accounts Receivable, net 18,000.00 14,000.00 -4,000.00
Prepaid Expenses 7,000.00 9,000.00 2,000.00
Inventory 25,000.00 15,000.00 -10,000.00
Long-term Investments 0.00 18,000.00 18,000.00
Equipment 60,000.00 30,000.00 -30,000.00
Accumulated Depreciation -18,000.00 -14,000.00 -4,000.00
Total Assets 120,000.00 85,000.00 -35,000.00

LIABILITIES AND STOCKHOLDER'S EQUITY

Accounts Payable 25,000.00 7,000.00 -18,000.00
Bonds Payable 37,000.00 45,000.00 8,000.00
Common Stock 40,000.00 23,000.00 -17,000.00
Retained Earnings 18,000.00 10,000.00 -8,000.00
Total Liabilities and Stockholder's Equity 120,000.00 85,000.00 -35,000.00

1 USE AND RESOURCE OF CASH

Sources:
Decrease in Accounts Payable -18,000.00
Decrease in Common Stock -17,000.00
Increase in Bonds Payable 8,000.00
Decrease in Retained Earnings -8,000.00
Total sources of cash -35,000.00

Uses:
Decrease in Accounts Receivable -4,000.00
Increase in Prepaid Expenses 2,000.00
Decrease in Inventory -10,000.00
Increase in Long term Investments 18,000.00
Decrease in Equipment -26,000.00
Total uses of cash -20,000.00

Net deduction in Cash -15,000.00

The deduction in Cash is -15,000.00 which is the result from subtracting the uses and sources of cash.
The result may be cause by the decrease in reateined earnings and decrease in accounts receivable which may be c
by the decrease in sales.

2 HORIZONTAL ANALYSIS
 2018 2019 % Change
ASSETS
Cash 28,000.00 13,000.00 -53.57%
Accounts Receivable, net 18,000.00 14,000.00 -22.22%
Prepaid Expenses 7,000.00 9,000.00 28.57%
InVentory 25,000.00 15,000.00 -40.00%
Long-term Investments 0.00 18,000.00 100.00%
Equipment 60,000.00 30,000.00 -50.00%
Accumulated Depreciation -18,000.00 -14,000.00 -22.22%
Total Assets 120,000.00 85,000.00 -29.17%

LIABILITIES AND STOCKHOLDER'S EQUITY

Accounts Payable 25,000.00 7,000.00 -72.00%
Bonds Payable 37,000.00 45,000.00 21.62%
Common Stock 40,000.00 23,000.00 -42.50%
Retained Earnings 18,000.00 10,000.00 -44.44%
Total Liabilities and Stockholder's Equity 120,000.00 85,000.00 -29.17%

Based from the result there is a decrease of -29.17% from 2018 to 2019. This result may be caused by the decrease
that may be resulted from the decrease in sale.

3 VERTICAL ANALYSIS
Common-Size
2018 2019 2018
ASSETS
Cash 28,000.00 13,000.00 23.33%
Accounts Receivable, net 18,000.00 14,000.00 15.00%
Prepaid Expenses 7,000.00 9,000.00 5.83%
InVentory 25,000.00 15,000.00 20.83%
Long-term Investments 0.00 18,000.00 0.00%
Net Equipment 42,000.00 16,000.00 35.00%
Total Assets 120,000.00 85,000.00 100.00%

LIABILITIES AND STOCKHOLDER'S EQUITY

Accounts Payable 25,000.00 7,000.00 20.83%
Bonds Payable 37,000.00 45,000.00 30.83%
Common Stock 40,000.00 23,000.00 33.33%
Retained Earnings 18,000.00 10,000.00 15.00%
Total Liabilities and Stockholder's Equity 120,000.00 85,000.00 100.00%

Based from the results you can see that there is a decrease of assets from year 2018 to 2019.
es of cash.
ceivable which may be cause
e caused by the decrease in retained earnings and decrease in accounts receivable

Common-Size Common Year

2019 2019

15.29% 0.46
16.47% 0.78
10.59% 1.29
17.65% 0.60
21.18% 0.00
18.82% 0.38
100.00% 0.71

8.24% 0.28
52.94% 1.22
27.06% 0.58
11.76% 0.56
100.00% 0.71