The horizontal analysis will be done in the following manner:
Company A | ||||
Balance Sheet | ||||
Dec-31 | ||||
Year | Increase/Decrease | |||
Yea 2 | Year 1 | Amount | % | |
ASSETS | ||||
Cash | 1692000 | 500000 | 1192000 | 238% |
Accounts Receivables | 1164000 | 800000 | 364000 | 46% |
Inventory | 2424000 | 1200000 | 1224000 | 102% |
Buildings | 8280000 | 8280000 | 0 | 0% |
Less: Accumulated Depreciation | -1560000 | -780000 | -780000 | 100% |
TOTAL ASSETS | 12000000 | 10000000 | 2000000 | 20% |
LIABILITIES & STOCKHOLDERS' EQUITY | ||||
Accounts Payable | 1128000 | 1000000 | 128000 | 13% |
Contingent Liability | 1176000 | 0 | 1176000 | 0% |
Common Stock | 5520000 | 5520000 | 0 | 0% |
Retained Earnings | 4176000 | 3480000 | 696000 | 20% |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | 12000000 | 10000000 | 2000000 | 20% |
Notes
The formulae used to prepare horizontal analysis are:
Increase/Decrease in $ = Current Year - Base Year
Increase/Decrease in % = Increase/Decrease in $/Base Year
The workings are attached below:
Please comment in case of any issue and I will be happy to help.
! Required information Exercise 12-4B Prepare vertical and horizontal analyses (L012-1, 12-2) The following information applies...
Required information Exercise 12-4B Prepare vertical and horizontal analyses (LO12-1, 12-2) (The following information applies to the questions displayed below.] The balance sheets for Company A for Year 2 and Year 1 are presented below. Exercise 12-4B Part 1 Required: 1. Prepare a vertical analysis of the balance sheet data for Year 2 and Year 1. Express each amount as a percentage of total d should be indicated by a minus sign. Round your answers to 1 decimal place.) COMPANY...
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Required information (The following information applies to the questions displayed below.] The balance sheets for Federer Sports Apparel for 2022 and 2021 are presented below. Required: 1. Prepare a vertical analysis of the balance sheet data for 2022 and 2021. Express each amount as a percentage of total assets. (Amounts to be deducted should be indicated by a minus sign. Round your answers to 1 decimal place.) FEDERER SPORTS APPAREL Balance Sheet December 31 2022 Amount % 2021 Amount %...
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