prepare a comparative balance sheet of gilmour company showing the dollar change and 592597
(Horizontal and Vertical Analysis) Presented below are comparative balance sheets for the Gilmour Company.
GILMOUR COMPANY |
||
December 31 |
||
2013 |
2012 |
|
Assets |
||
Cash |
$ 180,000 |
$ 275,000 |
Accounts receivable (net) |
220,000 |
155,000 |
Short-term investments |
270,000 |
150,000 |
Inventories |
1,060,000 |
980,000 |
Prepaid expenses |
25,000 |
25,000 |
Fixed assets |
2,585,000 |
1,950,000 |
Accumulated depreciation |
(1,000,000) |
(750,000) |
$3,340,000 |
$2,785,000 |
|
Liabilities and Stockholders’ Equity |
||
Accounts payable |
$ 50,000 |
$ 75,000 |
Accrued expenses |
170,000 |
200,000 |
Bonds payable |
450,000 |
190,000 |
Capital stock |
2,100,000 |
1,770,000 |
Retained earnings |
570,000 |
550,000 |
$3,340,000 |
$2,785,000 |
Instructions
(Round to two decimal places.)
(a) Prepare a comparative balance sheet of Gilmour Company showing the percent each item is of the total assets or total liabilities and stockholders’ equity.
(b) Prepare a comparative balance sheet of Gilmour Company showing the dollar change and the percent change for each item.
(c) Of what value is the additional information provided in part (a)?
(d) Of what value is the additional information provided in part (b)?