. Explain the result of the current ratio for XYZ Company. C. Compare and explain the result of the current ratio for XYZ Company with the Indus average. II. Horizontal & Vertical Analysis 1. Perform the Horizontal & Vertical Analysis (as required) for the following Financial Statements: Blank Cells = Required Fields 2021 Amount Percent a. Horizontal Method Retained Earnings, Jan. 1 Add: Net Income 2022 $425,000 $564,000 $989,000 $50,000 $939,000 $396,500 $494,000 $890,500 MET $40,000 $850,500 Deduct: Dividends Retained Earnings, Dec.31 b. Vertical Method 2022 Percent Sales revenue Sales returns and allowances Net Sales CGS Amount Percent $4,765,000 $107.000 $4,658,000 $2,100,000 $2,558,000 2021 Amount $2,010,000 $103,000 $1,907,000 $1,030,000 $877,000 Gross profit
