question archive Using the following data from the comparative balance sheet of Goody Company
Using the following data from the comparative balance sheet of Goody Company
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Using the following data from the comparative balance sheet of Goody Company.
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December 31, 2015 |
December 31, 2014 |
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Accounts receivable |
$520,000 |
$400,000 |
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|
Inventory |
$840,000 |
$600,000 |
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|
Total assets |
$3,000,000 |
$2,500,000 |
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Illustrate horizontal analysis. (Round percentages to 0 decimal places, e.g. 12%.)
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Increase or (Decrease) |
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Goody Company |
December 31, 2015 |
December 31, 2014 |
Amount |
Percentage |
||||||||
|
Accounts receivable |
$520,000 |
$400,000 |
$ |
|
% |
|||||||
|
Inventory |
$840,000 |
$600,000 |
$ |
|
% |
|||||||
|
Total assets |
$3,000,000 |
$2,500,000 |
$ |
|
% |
|||||||
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Answer:
1) accounts receiveable amount = 520,000-400,000 = 120,000 $
% increase = (120,000/400,000)x100 = 30 %
2) inventory amount = 840,000-600,000 = 240.000 $
% increase = (240,000/600,000)x100 = 40%
3) total assets amount = 3,000,000 - 2,500,000 = 500,000 $
% increase = (500,000/2,500,000)x100 = 20%
PFA
