SHOW CALCULATIONS AND FORMULAS for problem OR NO CREDIT GIVEN 4. The comparative
ID: 2540114 • Letter: S
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SHOW CALCULATIONS AND FORMULAS for problem OR NO CREDIT GIVEN
4. The comparative balance sheets of First Solar Corporation are presented below First Solar Corporation Comparative Condensed Balance Sheets December 31 2016 2015 AssetS Current assets Property, plant, and equipment (net) Intangibles $ 90,000 96,000 33,000 $219,000 $ 80,000 90,000 40,000 $210,000 Total assets Liabilities and stockholders' equity Current liabilities Long-term liabilities Stockholders' equity $ 58,300 142,500 18,200 $219,000 $ 48, 000 150,000 12,000 $210,000 Total liab & stockholders' equity Instructions (a) Prepare a horizontal analysis of the balance sheet data using 2015 as a base. (b) Prepare a vertical analysis of the balance sheet data in columnar form for 2016Explanation / Answer
a) Horizontal Analysis increase % 2016 2015 (decrease) Assets current assets 90,000 80,000 10,000 12.50% (10000/80000) Property,plant and equipment 96,000 90,000 6,000 6.67% (6000/90000) intangibles 33,000 40,000 -7,000 -17.50% (-7000/40000) total assets 219,000 210,000 9,000 4.29% (9000/210000) laibilities and stockholder's equity current liabilities 58,300 48,000 10,300 21.46% (10300/48000) long-term liabilities 142,500 150,000 -7,500 -5.00% (-7,500/150,000) Stockholder's equity 18,200 12,000 6,200 51.67% (6,200/12000) total liab & stockholder's equity 219,000 210,000 9,000 4.29% (9000/210000) increase(decrease) = amount of 2016-amount of 2015 b) Vertical analysis % 2016 Assets current assets 90,000 41.10% (90000/219000) Property,plant and equipment 96,000 43.84% (96000/219000) intangibles 33,000 15.07% (33000/219000) total assets 219,000 100.00% (219000/219000) laibilities and stockholder's equity current liabilities 58,300 26.62% (58300/219000) long-term liabilities 142,500 65.07% (142500/219000) Stockholder's equity 18,200 8.31% (18200/219000) total liab & stockholder's equity 219,000 100.00% (219000/219000)
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