Question

Suppose the comparative balance sheets of Sage Hill Inc. are presented here SAGE HILL INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets Property, plant, and equipment (net) Other assets Total assets $9.600 2,050 1.540 $8,700 1,840 1.740 $13.190 $12,280 Liabilities and Stockholders' Equity Current Liabilities Long-term liabilities $3.220 $3.340 1,300 1330 8,670 7.610 $13,190 $12,280 Stockholders' equity Total liabilities and stockholders' equity (a) Prepare a horizontal analysis of the balance sheet data for Sage Hill, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g.-55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, e.g. 12.1%) SAGE HILL INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Increase (Decrease) Percentage Change from 2016 Assets Current Assets $9,600 $8,700 $

Answer 1

(a)
SAGE HILL INC.
Condensed Balance Sheet
May 31
($ in millions)
	2017	2016	Increase(decrease) [ Amount of 2017 - Amount of 2016 ]	Percentage change from 2016 [ Increase(decrease) / Amount of 2016 ]
Assets
Current assets	9600	8700	900	10.3%
Property, plant and equipment (net)	2050	1840	210	11.4%
Other assets	1540	1740	-200	-11.5%
Total assets	13190	12280	910	7.4%
Liabilities and Stockholders' equity
Current liabilities	3220	3340	-120	-3.6%
Long-term liabilities	1300	1330	-30	-2.3%
Stockholders' equity	8670	7610	1060	13.9%
Total liabilities and stockholders' equity	13190	12280	910	7.4%

(b)
SAGE HILL INC.
Condensed Balance Sheet
For the year ended May 31, 2017
	$ (in millions)	Percent [ Respect amount / Total assets ]
Assets
Current assets	9600	72.8%
Property, plant and equipment (net)	2050	15.5%
Other assets	1540	11.7%
Total assets	13190	100.0%
Liabilities and Stockholders' equity
Current liabilities	3220	24.4%
Long-term liabilities	1300	9.9%
Stockholders' equity	8670	65.7%
Total liabilities and stockholders' equity	13190	100.0%