Suppose the comparative balance sheets of Tamarisk, Inc. are presented here. TAM
ID: 2532055 • Letter: S
Question
Suppose the comparative balance sheets of Tamarisk, Inc. are presented here.
TAMARISK, INC.
Condensed Balance Sheet
May 31
($ in millions)
2017
2016
Assets
Current Assets
$9,630
$8,790
Property, plant, and equipment (net)
2,020
1,860
Other assets
1,540
1,780
Total assets
$13,190
$12,430
Liabilities and Stockholders' Equity
Current Liabilities
$3,290
$3,400
Long-term liabilities
1,310
1,350
Stockholders’ equity
8,590
7,680
Total liabilities and stockholders' equity
$13,190
$12,430
(a) Prepare a horizontal analysis of the balance sheet data for Tamarisk, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)
TAMARISK, INC.
Condensed Balance Sheet
May 31
($ in millions)
2017
2016
Increase
(Decrease)
Percentage
Change
from 2016
Assets
Current Assets
$9,630
$8,790
%
Property, plant, and equipment (net)
2,020
1,860
%
Other assets
1,540
1,780
%
Total assets
$13,190
$12,430
%
Liabilities and Stockholders' Equity
Current Liabilities
$3,290
$3,400
%
Long-term liabilities
1,310
1,350
%
Stockholders’ equity
8,590
7,680
%
Total liabilities and stockholders' equity
$13,190
$12,430
%
(b) Prepare a vertical analysis of the balance sheet data for Tamarisk for 2017.
$ (in millions)
Percent
Assets
Current Assets
$9,630
%
Property, plant, and equipment (net)
2,020
%
Other assets
1,540
%
Total assets
$13,190
%
Liabilities and Stockholders' Equity
Current Liabilities
$3,290
%
Long-term Liabilities
1,310
%
Stockholders’ equity
8,590
%
Total liabilities and stockholders' equity
$13,190
%
TAMARISK, INC.
Condensed Balance Sheet
May 31
($ in millions)
2017
2016
Assets
Current Assets
$9,630
$8,790
Property, plant, and equipment (net)
2,020
1,860
Other assets
1,540
1,780
Total assets
$13,190
$12,430
Liabilities and Stockholders' Equity
Current Liabilities
$3,290
$3,400
Long-term liabilities
1,310
1,350
Stockholders’ equity
8,590
7,680
Total liabilities and stockholders' equity
$13,190
$12,430
Explanation / Answer
Req a: HORIZONTAL ANALYSIS: 2017 2016 INCREASE % CHANGE (DECREASE) FROM 2016 Assets: Current Assets 9630 8790 840 9.56% Property Plant and equipment 2020 1860 160 8.60% Other Assets 1540 1780 -240 -13.48% Total Assets 13190 12430 760 6.11% Liabilities and Stockholders' equity: Current liabilities 3290 3400 -110 -3.24% Long term liabilities 1310 1350 -40 -2.96% Stockholder's equity 8590 7680 910 11.85% Total Liabilities and Stockholder's equity 13190 12430 760 6.11% Req b: VERTICAL ANALYSIS: 2017 PERCENT Assets: Current Assets 9630 73.01% Property Plant and equipment 2020 15.31% Other Assets 1540 11.68% Total Assets 13190 100.00% Liabilities and Stockholders' equity: Current liabilities 3290 24.94% Long term liabilities 1310 9.93% Stockholder's equity 8590 65.13% Total Liabilities and Stockholder's equity 13190 100.00%
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