Question

Exercise 13-5 Your answer is partially correct. Try again. Suppose the comparative balance sheets of Marin Inc. are presented here. MARIN INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,730 $8,880 Property, plant, and equipment (net) 1,870 1,840 Other assets 1,470 1,780 Total assets $13,070 $12,500 Liabilities and Stockholders' Equity Current Liabilities $3,160 $3,330 Long-term liabilities 1,330 1,370 Stockholders’ equity 8,580 7,800 Total liabilities and stockholders' equity $13,070 $12,500 (a) Prepare a horizontal analysis of the balance sheet data for Marin, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) MARIN INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Increase (Decrease) Percentage Change from 2016 Assets Current Assets $9,730 $8,880 $ % Property, plant, and equipment (net) 1,870 1,840 % Other assets 1,470 1,780 % Total assets $13,070 $12,500 $ % Liabilities and Stockholders' Equity Current Liabilities $3,160 $3,330 $ % Long-term liabilities 1,330 1,370 % Stockholders’ equity 8,580 7,800 % Total liabilities and stockholders' equity $13,070 $12,500 $ % (b) Prepare a vertical analysis of the balance sheet data for Marin for 2017. MARIN INC. Condensed Balance Sheet $ (in millions) Percent Assets Current Assets $9,730 % Property, plant, and equipment (net) 1,870 % Other assets 1,470 % Total assets $13,070 % Liabilities and Stockholders' Equity Current Liabilities $3,160 % Long-term Liabilities 1,330 % Stockholders’ equity 8,580 % Total liabilities and stockholders' equity $13,070

Answer 1

MARIN INC.
Condensed Balance Sheet
May 31 ($ in millions)
	2017	2016	Increase (Decrease)	Percentage Change from 2016
Assets
Current Assets	9730	8880	850	9.6%
Property, plant, and equipment (net)	1870	1840	30	1.6%
Other assets	1470	1780	-310	-17.4%
Total assets	13070	12500	570	4.6%
Liabilities and Stockholders' Equity
Current Liabilities	3160	3330	-170	-5.1%
Long-term liabilities	1330	1370	-40	-2.9%
Stockholders’ equity	8580	7800	780	10.0%
Total liabilities and stockholders' equity	13070	12500	570	4.6%
MARIN INC.
Condensed Balance Sheet
	$ (in millions)	Percent
Assets
Current Assets	9730	74.4%
Property, plant, and equipment (net)	1870	14.3%
Other assets	1470	11.2%
Total assets	13070	100.0%
Liabilities and Stockholders' Equity
Current Liabilities	3160	24.2%
Long-term liabilities	1330	10.2%
Stockholders’ equity	8580	65.6%
Total liabilities and stockholders' equity	13070	100.0%