Question

Exercise 13-3 Here is financial information for Sage Hill Inc. December 31, 2017 December 31, 2016 Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $1 par Retained earnings $109,300 403,800 102,800 125,300 133,300 151,700 $ 93,800 353,300 68,300 93,800 118,300 166,700 Prepare a schedule showing a horizontal analysis for 2017, using 2016 as the base year. (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%.)

Answer 1

SAGE HILL INC. Condensed Balance sheet December. 31 Increase or (Decrease) 2017 2016 Amount Percentage Assets Current Assets $109,300 $ 93,800 $ 15,500 16.5% Plant assets (net) S403,800 $353,300 S 50,500 14.3% Total assets $513,100 $447,100 $ 66,000 14.8% Liabilities Current Liabilities $102,800 $ 68,300 $ 34,500 50.5% Long-term Liabilities $125,300 $ 93.800 $ 31,500 33.6% Total Liabilities $228.100 $ 162.100 $ 66,000 40.7% Stockholders' Equity Common stock, S1 par $133,300 $118,300 $ 15,000 12.7% Retained earnings $ 151,700 $166,700 S(15,000 -9.0% Total stockholders' equity $285,000 $285,000 $ 0.0% Total Liabilities and Stockholders' equity $513.100 $447,100 $ 66,000 14.8%