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Use the current asset section of the balance sheets of the Satin Company as of J

ID: 2376479 • Letter: U

Question

Use the current asset section of the balance sheets of the Satin Company as of June 30, 2012 and 2011 presented below to answer the questions that follow.



                                                                                                                            2012                                      2011

Cash and cash equivalents                                                                       $75,000                                 $58,800

Trade accounts receivable, et                                                                   157,500                                  193,200

Inventory                                                                                                         208,200                                  253,400

Other current assets                                                                                      18,400                                    15,500

                     Total current assets                                                              $459,100                               $520,900

Total assets                                                                                              $2,650,000                            $3,430,000


Below, complete a horizontal analysis of the current asset section of Shannon Company's balance sheet for 2012.  Your answers for "%Change" should be rounded to one decimal place, e.g., 10.3%.  Provide a short evaluation of this analysis.


                                                                              $ Change                                     % Change

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Explanation / Answer

change %


cash ans cah equivalent 16200 27.5%


Trade discount -35700 18.47%


Inventory -45200 17.83%


other current asset 2900 18.7%


total current asset -61800 11.86%


Total asset -780000 22.74%