~ (1) Financial information for Nealon Inc. is presented below.

~

(1) Financial information for Nealon Inc. is presented below.

                                            December 31, 2017                  December 31, 2016

Current assets                                   $140,000                         $110,000

Plant assets (net)                                 440,000                        360,000

Current liabilities                                  95,000                         75,000

Long-term liabilities                               165,000                       100,000

Common stock, $1 par                      180,000                           120,000

Retained earnings                                140,000                       175,000

Instructions

(a) Prepare a schedule showing a horizontal analysis for 2017 using 2016 as the base year. 7 points

 (b) What is the primary use of horizontal analysis? 3 points