Question

1. Conduct a horizontal analysis (comparative analysis) for the balance sheets of Gian’s Italian Cuisine as of November 30 and December 31, 2016.

	November	December
Current Assets:
Cash	9,000	14,000
Accounts Receivable	10,000	11,500
Food Inventory	4,000	3,538
Beverage Inventory	6,000	3,950
Prepaid Rent	18,000	20,000
Total Current Assets
Fixed Assets:
Furniture, Fixture & Equipment (FF&E)	7,500	9,870
Accumulated Depreciation (FF&E)	(3,030)	(4,000)
Building	20,000	20,000
Long term Investments	5,000	8,580
Long Term Assets	29,470	34,450
Total Assets
Current Liabilities:
Accounts Payable	7,000	6,790
Accrued Payroll	5,400	6,540
Accrued Taxes	5,500	3,500
Total Current Liabilities
Long Term Debt	10,000	12,000
Total Liabilities
Owner's Equity	39,000	40,620
Retained Earnings	9,570	17,988
Total Owner's Equity
Total Liabilities and Owner's Equity

Answer 1

Horizontal Analysis (Comparative Analysis) for the balance sheet of Gian's Italian Cuisine as of November 30 & December 31, 2016 :

	November	December	Increase or (Decrease)
			Amount	Percent
Current Assets:
Cash	9,000	14,000	5,000	55.56% = (5,000/9,000) * 100
Accounts Receivable	10,000	11,500	1,500	15% = (1,500/10,000) * 100
Food Inventory	4,000	3,538	-462	(11.55%) = (-462/4,000) * 100
Beverage Inventory	6,000	3,950	-2,050	(34.17%) = (-2,050/6000) * 100
Prepaid Rent	18,000	20,000	2,000	11.11% = (2,000/18,000) *100
Total Current Assets	47,000	52,988	5,988	12.74% = (5,988/47,000) * 100
Fixed Assets:
Furniture, Fixture & Equipment (FF&E)	7,500	9,870	2,370	31.6% = (2,370/7,500) * 100
Accumulated Depreciation (FF&E)	-3,030	-4,000	-970	32.01% = (-970 / -3,030) * 100
Building	20,000	20,000	0	0%
Long Term Investments	5,000	8,580	3,580	71.6% = (3,580/5,000) * 100
Long Term Assets	29,470	34,450	4,980	16.90% = (4,980/29,470) * 100
Total Assets	76,470	87,438	10,968	14.34% = (10,968/79,470) * 100
Current Liabilities:
Accounts Payable	7,000	6,790	-210	(3%) = (-210/7,000) * 100
Accrued Payroll	5,400	6,540	1,140	21.11% = (1,140/5,400) * 100
Accrued Taxes	5,500	3,500	-2,000	(36.36%) = (-2,000/5,500) * 100
Total Current Liabilities	17,900	16,830	-1,070	(5.98%) = (-1,070/17,900) * 100
Long Term Debt	10,000	12,000	2,000	20% = (2,000/10,000) * 100
Total Liabilities	27,900	28,830	930	3.33% = (930/27,900) * 100
Owner's Equity	39,000	40,620	1,620	4.15% = (1,620/39,000) * 100
Retained Earnings	9,570	17,988	8,418	87.96% = (8,418/9,570) * 100
Total Owner's Equity	48,570	58,608	10,038	20.67% = (10,038/48,570) * 100
Total Liabilities and Owner's Equity	76,470	87,438	10,968	14.34% = (10,968/76,470) *100

Percentage Change in Increase / (Decrease) = [Amount of Increase or (Decrease) / Amount on November 30, 2016] * 100

Percentage Change in Increase / (Decrease) is Rounded off to 2 Decimals.