Please calculate the verticle and horizontal analysis of the balance sheet. Consolidated Balance Sheets (USD $) 12/31/2020 Vertical Analysis 12/31/2019 Vertical Analysis Horizontal Analysis In Millions, unless otherwise specified Current Assets: Cash and Cash Equivalents $1,723 $1,929 Receivables, net 1,484 1,398 Merchandise Inventories 11,079 11,057 Other Current Assets 1,016 895 Total Current Assets 15,302 15,279 Property and Equipment, at cost 38,513 39,064 Less Accumulated Depreciation and Amortization 15,793 15,716 Net Property and Equipment 22,720 23,348 Goodwill 1,353 1,289 Other Assets 571 602 Total Assets 39,946 40,518 Current Liabilities: Short-Term Debt 290 0 Accounts Payable 5,807 5,797 Accrued Salaries and Related Expenses 1,391 1,428 Sales Taxes Payable 434 396 Deferred Revenue 1,468 1,337 Income Taxes Payable 35 12 Current Installments of Long-Term Debt 38 33 Other Accrued Expenses 1,806 1,746 Total Current Liabilities 11,269 10,749 Long-Term Debt, excluding current installments 16,869 14,691 Other Long-Term Liabilities 1,844 2,042 Deferred Income Taxes 642 514 Total Liabilities 30,624 27,996 STOCKHOLDERS' EQUITY Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.768 billion shares at February 1, 2015 and 1.761 billion shares at February 2, 2014; outstanding: 1.307 billion shares at February 1, 2015 and 1.380 billion shares at February 2, 2014 88 88 Paid-In Capital 8,885 8,402 Retained Earnings 26,995 23,180 Accumulated Other Comprehensive (Loss) Income -452 46 Treasury Stock, at cost, 461 million shares at February 1, 2015 and 381 million shares at February 2, 2014 -26,194 -19,194 Total Stockholders’ Equity 9,322 12,522 Total Liabilities and Stockholders' Equity $39,946 $40,518
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Please calculate the verticle and horizontal analysis of the balance sheet.
| Consolidated Balance Sheets (USD $) | 12/31/2020 | Vertical Analysis | 12/31/2019 | Vertical Analysis | Horizontal Analysis | |
| In Millions, unless otherwise specified | ||||||
| Current Assets: | ||||||
| Cash and Cash Equivalents | $1,723 | $1,929 | ||||
| Receivables, net | 1,484 | 1,398 | ||||
| Merchandise Inventories | 11,079 | 11,057 | ||||
| Other Current Assets | 1,016 | 895 | ||||
| Total Current Assets | 15,302 | 15,279 | ||||
| Property and Equipment, at cost | 38,513 | 39,064 | ||||
| Less |
15,793 | 15,716 | ||||
| Net Property and Equipment | 22,720 | 23,348 | ||||
| 1,353 | 1,289 | |||||
| Other Assets | 571 | 602 | ||||
| Total Assets | 39,946 | 40,518 | ||||
| Current Liabilities: | ||||||
| Short-Term Debt | 290 | 0 | ||||
| Accounts Payable | 5,807 | 5,797 | ||||
| Accrued Salaries and Related Expenses | 1,391 | 1,428 | ||||
| Sales Taxes Payable | 434 | 396 | ||||
| Deferred Revenue | 1,468 | 1,337 | ||||
| Income Taxes Payable | 35 | 12 | ||||
| Current Installments of Long-Term Debt | 38 | 33 | ||||
| Other Accrued Expenses | 1,806 | 1,746 | ||||
| Total Current Liabilities | 11,269 | 10,749 | ||||
| Long-Term Debt, excluding current installments | 16,869 | 14,691 | ||||
| Other Long-Term Liabilities | 1,844 | 2,042 | ||||
| 642 | 514 | |||||
| Total Liabilities | 30,624 | 27,996 | ||||
| Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.768 billion shares at February 1, 2015 and 1.761 billion shares at February 2, 2014; outstanding: 1.307 billion shares at February 1, 2015 and 1.380 billion shares at February 2, 2014 | 88 | 88 | ||||
| Paid-In Capital | 8,885 | 8,402 | ||||
| Retained Earnings | 26,995 | 23,180 | ||||
| Accumulated Other Comprehensive (Loss) Income | -452 | 46 | ||||
| -26,194 | -19,194 | |||||
| Total Stockholders’ Equity | 9,322 | 12,522 | ||||
| Total Liabilities and Stockholders' Equity | $39,946 | $40,518 |
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