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WHAT IS THE PERCENTAGE FOR EACH? LOGIC COMPANY Comparative Balance Sheet Decembe

ID: 2384451 • Letter: W

Question

WHAT IS THE PERCENTAGE FOR EACH?

LOGIC COMPANY
Comparative Balance Sheet
December 31, 2014 and 2015
2015 2014 Amount      Percent     Amount    Percent Assets   Current assets:      Cash $ 12,000     $ 9,000          Accounts receivable 16,500     12,500          Merchandise inventory 8,500     14,000          Prepaid expenses 24,000     10,000            Total current assets $ 61,000     $ 45,500       Plant and equipment:      Building (net) $ 14,500     $ 11,000          Land 13,500     9,000            Total plant and equipment $ 28,000     $ 20,000       Total assets $ 89,000     $ 65,500     Liabilities   Current liabilities:      Accounts payable $ 13,000     $ 7,000          Salaries payable 7,000     5,000            Total current liabilities $ 20,000     $ 12,000       Long-term liabilities:      Mortgage note payable 22,000     20,500            Total liabilities $ 42,000     $ 32,500       Stockholders’ Equity   Common stock $ 21,000     $ 21,000       Retained earnings 26,000     12,000              Total stockholders’ equity      $ 47,000     $ 33,000          Total liabilities and stockholders’ equity $ 89,000     $ 65,500

WHAT IS THE PERCENTAGE FOR EACH?

Explanation / Answer

LOGIC COMPANY
Comparative Balance Sheet
December 31, 2014 and 2015

2015

2014

Amount

Percent

Amount

Percent

Assets

Current assets:

Cash

$12,000

13.48%

$9,000

13.74%

Accounts receivable

$16,500

18.53%

$12,500

19.08%

Merchandise inventory

$8,500

9.55%

$14,000

21.37%

Prepaid expenses

$24,000

26.96%

$10,000

15.27%

Total current assets

$61,000

68.54%

$45,500

69.47%

Plant and equipment:

Building (net)

$14,500

16.29%

$11,000

16.79%

Land

$13,500

15.17%

$9,000

13.74%

Total plant and equipment

$28,000

31.46%

$20,000

30.53%

Total assets

$89,000

100.00%

$65,500

100.00%

Liabilities:

Current liabilities:

Accounts payable

$13,000

14.61%

$7,000

10.69%

Salaries payable

$7,000

7.87%

$5,000

7.63%

Total current liabilities

$20,000

22.47%

$12,000

18.32%

Long-term liabilities:

Mortgage note payable

$22,000

24.72%

$20,500

31.30%

Total liabilities

$42,000

47.19%

$32,500

49.62%

Stockholders’ Equity

Common stock

$21,000

23.60%

$21,000

32.06%

Retained earnings

$26,000

29.21%

$12,000

18.32%

Total stockholders’ equity    

$47,000

52.81%

$33,000

50.38%

Total liabilities and stockholders’ equity

$89,000

100.00%

$65,500

100.00%

Calculation Formula = Concern Item Amount / Total liabilities and stockholders’ equity*100

LOGIC COMPANY
Comparative Balance Sheet
December 31, 2014 and 2015

2015

2014

Amount

Percent

Amount

Percent

Assets

Current assets:

Cash

$12,000

13.48%

$9,000

13.74%

Accounts receivable

$16,500

18.53%

$12,500

19.08%

Merchandise inventory

$8,500

9.55%

$14,000

21.37%

Prepaid expenses

$24,000

26.96%

$10,000

15.27%

Total current assets

$61,000

68.54%

$45,500

69.47%

Plant and equipment:

Building (net)

$14,500

16.29%

$11,000

16.79%

Land

$13,500

15.17%

$9,000

13.74%

Total plant and equipment

$28,000

31.46%

$20,000

30.53%

Total assets

$89,000

100.00%

$65,500

100.00%

Liabilities:

Current liabilities:

Accounts payable

$13,000

14.61%

$7,000

10.69%

Salaries payable

$7,000

7.87%

$5,000

7.63%

Total current liabilities

$20,000

22.47%

$12,000

18.32%

Long-term liabilities:

Mortgage note payable

$22,000

24.72%

$20,500

31.30%

Total liabilities

$42,000

47.19%

$32,500

49.62%

Stockholders’ Equity

Common stock

$21,000

23.60%

$21,000

32.06%

Retained earnings

$26,000

29.21%

$12,000

18.32%

Total stockholders’ equity    

$47,000

52.81%

$33,000

50.38%

Total liabilities and stockholders’ equity

$89,000

100.00%

$65,500

100.00%