Using the Following Selected Items from the Comparative Balance Sheet

Essay

Using the following selected items from the comparative balance sheet of Ames Company illustrate horizontal and vertical analysis. $\begin{array}{lcc}&\text { December 31, } 2015& \text { December 31, } 2014\\\text { Accounts Receivable } & \$ 960,000 & \$ 600,000 \\\text { Inventory } & 975,000 & 780,000 \\\text { Total Assets } & 4,000,000 & 2,500,000\end{array}$