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selected information from a finanacial statement for twoyears. Compute the perce

ID: 2433386 • Letter: S

Question

selected information from a finanacial statement for twoyears. Compute the percentage change from 2006 to 2007 whenpossible and round to the nearest whole percentage.                                                                                              2007                   2006 a. Accountsreceivable..........................................................$126,000          $160,000 b. Marketablesecurities..........................................................-0-                     250,000 c. Retainedearnings................................................................80,000               (80,000) d. Notesreceivable................................................................120,000                 -0- e. Notespayable....................................................................870,000              800,000 f. Cash...................................................................................84,000                 80,000 g. Sales...................................................................................970,000              910,000 selected information from a finanacial statement for twoyears. Compute the percentage change from 2006 to 2007 whenpossible and round to the nearest whole percentage.                                                                                              2007                   2006 a. Accountsreceivable..........................................................$126,000          $160,000 b. Marketablesecurities..........................................................-0-                     250,000 c. Retainedearnings................................................................80,000               (80,000) d. Notesreceivable................................................................120,000                 -0- e. Notespayable....................................................................870,000              800,000 f. Cash...................................................................................84,000                 80,000 g. Sales...................................................................................970,000              910,000

Explanation / Answer

                                                     2007                   2006            % increase a. Accounts receivable................$126,000          $160,000         (160,000-126000)/160000= 21% decrease b. Marketable securities.... ..........  -0-                    250,000         (250,000-0)/250000= 100% decrease c. Retained earnings........... ..........80,000            (80,000)       (-80,000-80000)/-80000 = 200% increase d. Notes receivable..................... 120,000                 -0-            (0-120,000)/0= Not possible e. Notes payable..........................870,000            800,000         (800,000-870000)/800000= 8.75 i.e 9% increase f. Cash.........................................84,000               80,000         (80,000-84,000)/80,000= 5% increase g. Sales..................................... .970,000              910,000        (910,000-970000)/910,000= 6.59 i.e. 7% increase