Question

*Exercise 13-5 Suppose the comparative balance sheets of Splish Brothers Inc. are presented here. SPLISH BROTHERS INC. Condensed Balance Sheet May 31 (s in millions) 2017 2016 Assets Current Assets $9,710 $8,720 Property, plant, and equipment (net) 1,940 1,870 Other assets 1,500 1,690 Total assets $13,150 $12,280 Liabilities and Stockholders' Equity Current Liabilities $3,220 $3,330 Long-term liabilities 1,330 1,380 Stockholders' equity 8,600 7,570 Total liabilities and stockholders' equity $13,150 $12,280 (a) Prepare a horizontal analysis of the balance sheet data for Splish Brothers, using 2016 as a base. (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%.) SPLISH BROTHERS INC. Condensed Balance Sheet May 31 (s in millions) 2017 2016 Increase (Decrease) Percentage Change from 2016 490% Assets 74760 $ Current Assets $9,710 - $8,720 990 2.0 % Property, plant, and equipment (net) 1,940 - 1,870 70 % 4.0 3.0 Other assets 1,500 1,690 (190) % $ Total assets $13,150 - $12,280 870 1.0 % Liabilities and Stockholders' Equity $ Current Liabilities $3,220 $3,330 % (110) 3.0 Long-term liabilities 1,330 1,380 %

Answer 1

E F 3 Splish Brothers Inc 4 Condensed balance sheet (Horizontal analysis) 5 May 31 (S in millions) 2017 Increase / Percentage change 2016 6 (Decrease) from 2016 7 Assets: 8 Current assets $9,710 $8,720 $990 11.35% 9 Property, Plant, and Equipment (net) $1,940 $1,870 $70 3.74% 10 Other assets $1.500 $1.690 ($190) -11.24% 11 Total assets $13,150 $12,280 $870 7.08% 12 Liabilities and stockholders' equity 13 Current liabilities $3,220 $3,330 ($110) -3.30% 14 Long term Liabilities $1. $50) -3.62% 15 Stockholders' equity $8.600 $7.570 $1.030 13.61% 16 Total liabilities and stockholders' equity $13,150 $12,280 $870 7.08% 17 18 Splish Brothers Inc 19 Condensed balance sheet Vertical analysis) 20 May 31 ($ in millions) 21 2017 Percentage 22 Assets: 23 Current assets $9.710 74% 24 Property, Plant, and Equipment (net) $1,940 15% 25 Other assets $1.500 11% 26 Total assets $13,150 100% 27 Liabilities and stockholders' equity 28 Current liabilities $3,220 24% 29 Long term Liabilities $1,330 10% 30 Stockholders' equity 58.600 65% 31 Total liabilities and stockholders' equity $13.150 100% Sheet1 Sheet2 Sheet3 /

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