The current assets section of the company\'s two most recent balance sheets are

Question

The current assets section of the company's two most recent balance sheets are presented below: 6. Refer to Regency Lighting. Complete a common size horizontal analysis of the current assets section of the balance sheet for 2015. Your answers should be expressed as percentages and rounded to one decimal place. Provide a short explanation of this analysis. 7. Refer to Regency Lighting. Complete a common size vertical analysis of the current assets section of the balance sheet for 2015. Your answers should be expressed as percentages and rounded to one decimal place.

Explanation / Answer

Answer 6 Horizontal analysis of the Current asset section 2014 2015 % Cash $29,400 $37,500 128% Account Receivable Net $96,600 $78,750 82% Inventory $1,26,700 $1,04,100 82% Other current assets $7,750 $9,200 119% Total Current assets $2,60,450 $2,29,550 88% Total Assets $17,15,000 $13,25,000 77% Analysis as under, Cash rise by 28% from 2014 level. Account receivable and inventory fall by 18% from 2014 level. other current asset rise by 19% from 2014 level. Overall current asset and total asset fall by 12% and 23% from 2014 level. Answer 7 Vertical analysis of the Current asset section 2014 % of total asset 2015 % of total asset Cash $29,400 1.71% $37,500 2.83% Account Receivable Net $96,600 5.63% $78,750 5.94% Inventory $1,26,700 7.39% $1,04,100 7.86% Other current assets $7,750 0.45% $9,200 0.69% Total Current assets $2,60,450 15.19% $2,29,550 17.32% Total Assets $17,15,000 100.00% $13,25,000 100.00%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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