Question

Birtle Corporation reports the following statement of financial position information for 2017 and 2018. Assets 2017 2018 Current assets Cash Accounts receivable Inventory Total $ 43,805 16,843 $ 9,279 23,683 42,636 $ 75,598 BIRTLE CORPORATION 2017 and 2018 Statement of Financial Position Liabilities and Owners' Equity 2018 2017 Current liabilities $ 11,173 Accounts payable $ 41,060 25,760 Notes payable 16, 157 46,915 $ 83, 848 Total $ 57,217 Long-term debt $ 40,000 Owners' equity Common stock and paid-in surplus $ 50,000 Retained earnings 200,428 $ 297,967 Total $250,428 $381,815 Total liabilities and owners' equity $347,645 $ 60,648 $ 35,000 Fixed assets Net plant and equipment Total assets $ 272,047 $347,645 $ 50,000 236, 167 $286, 167 $381,815

Answer 1

Solution

Vertical analysis of Balance sheet
	2017		2018
Assets
Cash	$        9,279.00	2.67%	$      11,173.00	2.93%
Accounts Receivable	$      23,683.00	6.81%	$      25,760.00	6.75%
Inventory	$      42,636.00	12.26%	$      46,915.00	12.29%
Total	$      75,598.00	21.75%	$      83,848.00	21.96%
Fixed asset
Net plant and equipment	$ 272,047.00	78.25%	$ 297,967.00	78.04%
Total assets	$ 347,645.00	100.00%	$ 381,815.00	100.00%
Liabilities and Owner's equity
Current liabilities
Accounts payable	$      41,060.00	11.81%	$      43,805.00	11.47%
Notes Payable	$      16,157.00	4.65%	$      16,843.00	4.41%
Total	$      57,217.00	16.46%	$      60,648.00	15.88%
Long term debt	$      40,000.00	11.51%	$      35,000.00	9.17%
Owner's equity
Common stock and paid in surplus	$      50,000.00	14.38%	$      50,000.00	13.10%
Accumulated retained earnings	$ 200,428.00	57.65%	$ 236,167.00	61.85%
Total	$ 250,428.00	72.04%	$ 286,167.00	74.95%
Total liabilities anf Owner's equity	$ 347,645.00	100.00%	$ 381,815.00	100.00%