1,292,000 1. Prepare a verticle analysis of Fantasy Football\'s 2018 and 2017 ba
ID: 2594776 • Letter: 1
Question
1,292,000
1. Prepare a verticle analysis of Fantasy Football's 2018 and 2017 balance sheets. Express each amount as a percentage of total assets for that year.
2. Prepare a horizontal analysis of Fantasy Football's 2018 balance sheet using 2017 as the base year.
Assets 2018 2017 Current Assets: Cash $208,000 $262,200 Accounts Receivable 856,000 999,400 Inventory 1,900,000 1,349,000 Supplies 124,000 87,400 Long-term Assets: Equipment 1,292,0001,292,000
Less: Accumulated depreciation (380,000) (190,000) Total assets $4,000,000 $3,800,000 Liabilities and Stockholders' Equity Current Liabilities: Acounts Payable $168,000 $129,200 Interest Payable 0 3,800 Income Tax Payable 76,000 76,000 Long-term Liabilities: Notes Payable 760,000 760,000 Stockholders' Equity: Common Stock 786,600 786,600 Retained Earnings 2,209,400 2,044,400 Total Liabilities and Stockholders' Equity $4,000,000 $3,800,000Explanation / Answer
1) vertical analysis of Fantasy Football's 2018 and 2017 balance sheets
Amount
%
Amount
%
Assets :
Current assets :
cash
$208,000
5.2
$262,200
6.9
accounts receivable
$856,000
21.4
$999,400
26.3
Inventory
$1,900,000
47.5
$1,349,000
35.3
Supplies
$124,000
3.1
$87,400
2.3
Long term assets :
Equipment
$1,292,000
32.3
$1,292,000
34
less: accumulated depreciation
($380,000)
-9.50%
($190,000)
-5.00%
Total assets
$4,000,000
100
$3,800,000
100
Liabilities and stockholders equity
current liabilities:
accounts payable
$168,000
4.2
$129,200
3.4
interest payable
$0
$3,800
0.1
income tax payable
$76,000
1.9
$76,000
2
Long term liabilities
notes payable
$760,000
19
$760,000
20
Stock holders equity:
common stock
$786,600
19.7
$786,600
20.7
retained earnings
$2,209,400
55.2
$2,044,400
53.8
total liabilities and stockholders equity
$4,000,000
100
$3,800,000
100
2 ) horizontal analysis of Fantasy Football's 2018 balance sheet using 2017 as the base year.
2018
2017
increase/(decrease)
% 2017 as base year
Amount
Assets :
Current assets :
cash
$208,000
$262,200
$54,000
20.61
accounts receivable
$856,000
$999,400
$143,400
14.34
inventory
$1,900,000
$1,349,000
($551,000)
-40.86%
supplies
$124,000
$87,400
($36,600)
-41.87%
Long term assets :
Equipment
$1,292,000
$1,292,000
$0
0
less: accumulated depreciation
($380,000)
($190,000)
($190,000)
-100.00%
Total assets
$4,000,000
$3,800,000
($200,000)
-5.26%
Liabilities and stockholders equity
current liabilities:
accounts payable
$168,000
$129,200
($38,800)
-30.03%
interest payable
$0
$3,800
$3,800
100.00%
income tax payable
$76,000
$76,000
$0
0.00%
Long term liabilities
notes payable
$760,000
$760,000
$0
0.00%
Stock holders equity:
common stock
$786,600
$786,600
$0
0.00%
retained earnings
$2,209,400
$2,044,400
($165,000)
-8.07%
total liabilities and stockholders equity
$4,000,000
$3,800,000
($200,000)
-5.26%
Amount
%
Amount
%
Assets :
Current assets :
cash
$208,000
5.2
$262,200
6.9
accounts receivable
$856,000
21.4
$999,400
26.3
Inventory
$1,900,000
47.5
$1,349,000
35.3
Supplies
$124,000
3.1
$87,400
2.3
Long term assets :
Equipment
$1,292,000
32.3
$1,292,000
34
less: accumulated depreciation
($380,000)
-9.50%
($190,000)
-5.00%
Total assets
$4,000,000
100
$3,800,000
100
Liabilities and stockholders equity
current liabilities:
accounts payable
$168,000
4.2
$129,200
3.4
interest payable
$0
$3,800
0.1
income tax payable
$76,000
1.9
$76,000
2
Long term liabilities
notes payable
$760,000
19
$760,000
20
Stock holders equity:
common stock
$786,600
19.7
$786,600
20.7
retained earnings
$2,209,400
55.2
$2,044,400
53.8
total liabilities and stockholders equity
$4,000,000
100
$3,800,000
100
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