Question

Using these data from the comparative balance sheet of Rollaird Company, perform horizontal analysis.

		December 31, 2020			December 31, 2019
Accounts receivable		$545,300			$410,000
Inventory		806,200			580,000
Total assets		3,052,660			2,587,000

(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

									Increase or (Decrease)
		December 31, 2020			December 31, 2019				Amount		Percentage
Accounts receivable		$545,300			$410,000				$			%
Inventory		806,200			580,000							%
Total assets		3,052,660			2,587,000							%

Answer 1

Answer

Rollaird company

Comparative Balance sheet

			Increase or (Decrease)
Particulars	2020	2019	Amount	Percentage
Account receivables	545,300	410,000	135,300	33%
Inventory	806,200	580,000	226,200	39%
Total assets	3,052,660	2,587,000	465,660	18%

Working note :

Change in Amount

Account receivables = 545,300 - 410,000 = $135,300

Inventory = 806,200 - 580,000 = $226,200

Total Assets = 3,052,660 - 2,587,000 = $465,660

Change in percentage

Account receivables = (135,300 / 410,000) × 100 = 33%

Inventory = (226,200 / 580,000) × 100 = 39%

Total Assets = (465,660 / 2,587,000) × 100 = 18%

Account receivables changed 33% , total assets change 18% and inventory change 39%.

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