2. Prepare a horizontal analysis of Sports Unlimited\'s 2018 balance sheet using

Question

2. Prepare a horizontal analysis of Sports Unlimited's 2018 balance sheet using 2017 as the base year. (Negative amounts and Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) SPORTS UNLIMITED Balance Sheets Year Increase (Decrease) Amount 2018 2017 Current assets: $211,500 140,800 50,400 154,400 14,400 Cash 99,900 82,800 28,800 Accounts receivable Prepaid rent Long-term assets: Investment in bonds 108,900 238,500 206,100 (76,500) $ 900,000$ 800,000 280,000 202,400 (42,400) Equipment Less: Accumulated depreciation Total a ssets Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable $ 75,600 88,800 14,400 16,000 28,800 21,600 Long-term liabilit Notes payable 243,900 234,400 Stockholders' equity 288,000 242,100 $ 900,000 288,000 158,400 800,000 Common stock Retained earnings Total liabilities and stockholders' equity

Explanation / Answer

Horizontal Analysis of Balance Sheet

December 31, 2018 and 2017

(All Amounts in $ )

Amount

Increase / (Decrease)

%

Increase / (Decrease)

Long Term Assets

Liabilities and Stockholders' Equity

Long Term Liabilities

# 211500 - 140800 = 70700

(70700 / 140800 ) * 100 = 50.2%

Assets 2018 2017

Amount

Increase / (Decrease)

%

Increase / (Decrease)

Current Assets Cash 211500 140800 70700 # 50.2% # Accounts Receivable 99900 50400 49500 98.2% Inventory 82800 154400 (71600) (46.4)% Prepaid Rent 28800 14400 14400 100%

Long Term Assets

Investment in bonds 108900 0 108900 Not Applicable Land 238500 280000 (41500) (14.8)% Equipment 206100 202400 3700 1.8% Less: Accumulated Depreciation (76500) (42400) 34100 80.4% Total Assets 900000 800000 100000 12.5%

Liabilities and Stockholders' Equity

Current Liabilities Accounts Payable 75600 88800 (13200) (14.9)% Interest Payable 28800 14400 14400 100% Income Tax Payable 21600 16000 5600 35%

Long Term Liabilities

Notes Payable 243900 234400 9500 4.1% Stockholders' Equity Common Stock 288000 288000 0 0 Retained Earnings 242100 158400 83700 52.8% Total Liabilities and Stockholders' Equity 900000 800000 100000 12.5%

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.