Question

PROBLEMS OSLENS 127 P3.1 Present in the proper form a comparative horizontal analysis of the cor porate balance sheet shown below. Comment on any items of difference that you consider significant Assets Year 0007 Year 2008 Current Assets Cash Credit card receivables $ 11,300 S 15400 4,500 Accounts receivable 6,300 11.100 Vending inventories 18,900 7.500 8.400 Prepaid expenses 4,200 4,100 Total Current Assets $ 38,600 $ 53,100 Property Plant & Equipment Land Building Furnishings Equipment Accumulated depreciation Glassware, linen inventories Net Property and Equipment Total Assets $ 81,200 758,100 83,712 90,688 (315,500)“ 12,200 $710,400 $749,000 S 81,200 795,300 93,412 90,688 (335.800)- 15.300 $740,100 $793,200 Liabilities & Stockholders' Equity Current Liabilities Accounts payable Accrued expenses payable Taxes payable Current portion, mortgage payable Total Current Liabilities $ 9,200 4,150 12,150 13,500 $ 39,000 $ 12,200 4,900 15,500 11,200 $ 43,800 Long-Term Liabilities Mortgage payable Total Liabilities $423,800 $462,800 $412,300 $456,100 Stockholders' Equity Capital stock Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity $125,200 161,000 $286,200 $749,000 $145,200 191.900 $337,100 $793,200

Answer 1

question is aboubt converting Balance sheet from vertical format to Horizontal format and comenting on any significant difference if any, the same has been given by hand written notes.

Comments on difference in significant items : year 1 Capital Stock - Shares of 20000 $ issued in Years 81200812.00 7581007453 8371293413 Accounts Receivable:- Balance Sheet (figures in B Liabilities 1 year year Assets 7 8 Capital Stock 135200145200 fixed Assets :- tained earnings 161000 191900 Land Building ing Term Liabilities:- furnishings Mortgage payable 4238 412300 Equipment 90688 90688 - Accumulated Lurrent Liabilities: depreciation (31S 500 (335100 Accounts Payable 9200 12200 Glass ware, Linen ccrued expenses Payable 4150 4900 Inventory 122.00 5300 Taxes payable 12150 15500 arrent portion, mortgage Current Assets: Payable 13500 1200 Cash 11300 1400 (redit card Receivables (4500 6300 Accounts Receivables 11100 18900 vending Inventories 7500 8400 Prepaid expenses HR OD 4100 Accounts receivable in year 8 have been increased by $ 7800 in comparison to Year 7. This indicates that Sales might have been simultaneously increased 749.600 793200 749000 793200