The comparative balance sheet of Stuart Company appears below:

a. Using horizontal analysis, show the percentage change for each balance sheet item using 2006 as a base year. (please show this in columnar form by item.)

b. Using vertical analysis, prepare a common size comparative balance sheet. (please show this in columnar form by item. You may add two more appropriately labeled columns for this information. In other words, column 1 should list each item; column two – show the horizontal analysis (change percentage); columns three and four – show the vertical analysis for each year.) (note that is it not necessary to list the dollar values for each item in your answer.)

c. Comments on any significant changes observed from your analysis.