Question

E18-4 Comparative data from the balance sheet of BlackBerry Limited are shown below BLACKBERRY LIMITED Consolidated Balance Sheet February 28, 2015, and March 1, 2014 (in U.S. millions) Feb. 28, 2015 Assets $4,167 Current assets Non-current assets 2,382 Total assets $6,549 Liabilities and Shareholders' Equity Current liabilities $1,363 Non-current liabilities 1,755 Total liabilities 3,118 Shareholders' equity 3,431 Total liabilities and shareholders' equity $6,549 Mar. 1, 2014 $4,848 2,704 $7,552 $2,268 1,659 3,927 3,625 $7,552 Instructions (a) Using horizontal analysis, calculate the percentage change between 2014 and 2015. (b) Using vertical analysis, calculate the percentage of the base amount for each year. (c) Based on your calculations in parts (a) and (b), identify any significant changes from 2014 to 2015

Answer 1

Ans. A	BLACKBERRY   COMPANY
	Horizontal Analysis of Balance Sheet
		2015	2014	Amount change	Percentage change
	Assets
	Current Assets	$4,167	$4,848	-$681	-14.05%
	Non current assets	$2,382	$2,704	-$322	-11.91%
	Total assets	$6,549	$7,552	-$1,003	-13.28%
	Liabilities and Stockholder's Equity:
	Current Liabilities	$1,363	$2,268	-$905	-39.90%
	Non current liabilities	$1,755	$1,659	$96	5.79%
	Total liabilities	$3,118	$3,927	-$809	-20.60%
	Stockholder's equity	$3,431	$3,625	-$194	-5.35%
	Total liabilities and stockholder's equity	$6,549	$7,552	-$1,003	-13.28%
	Change in amount = Particular amount of current year 2019 - Particular amount of previous year 2018
	Change in percentage = Change in amount / particular amount of base (2018) or previous year * 100
Ans. B	BLACKBERRY   COMPANY
	Horizontal Analysis of Balance Sheet
		2015	%	2014	%
	Assets
	Current Assets	$4,167	63.63%	$4,848	64.19%
	Non current assets	$2,382	36.37%	$2,704	35.81%
	Total assets	$6,549	100.00%	$7,552	100.00%
	Liabilities and Stockholder's Equity:
	Current Liabilities	$1,363	20.81%	$2,268	30.03%
	Non current liabilities	$1,755	26.80%	$1,659	21.97%
	Total liabilities	$3,118	47.61%	$3,927	52.00%
	Stockholder's equity	$3,431	52.39%	$3,625	48.00%
	Total liabilities and stockholder's equity	$6,549	100.00%	$7,552	100.00%
	Amount is percentage from assets side (2015) =   Particular amount from assets side (2015) / Total assets (2015) * 100
	Amount is percentage from liabilities side (2015) =   Particular amount from liability side (2015)/ Total liabilities and owner's equity (2015) * 100
	Amount is percentage from assets side (2014) =   Particular amount from assets side (2014) / Total assets (2014) * 100
	Amount is percentage from liabilities side (2014) =   Particular amount from liability side (2014)/ Total liabilities and owner's equity (2014) * 100
Ans. C	Non current liabilities are increasing from 2014 to 2015 besides this all liabilities and assets
	are decreasing from previous year (2014) to current year (2015). So it has the positive
	change in percentage.