Prepare a horizontal analysis

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Reference no: EM132066045

 

Question - Presented below is a balance sheet for the last two years:


2016

2015

Cash

$118,000

$115,000

Accounts receivable

$98,000

$ 77,000

Short-term investments

$60,000

$65,000

Current assets

$276,000

$257,000

Equipment, net of depreciation

$220,000

$205,000

Land

$75,000

$75,000

Total assets

$571,000

$537,000




Accounts payable

$72,000

$96,000

Wages payable

$4,000

$3,000

Short-term revolving bank loan

$85,000

$50,000

Current liabilities

$161,000

$149,000

Long-term debt

$128,000

$132,000

Total liabilities

$289,000

$281,000

Common stock

$100,000

$100,000

Prepare a horizontal analysis. Display percentages to 3 decimal places (.654 = 65.4%). Discuss any line items from the balance sheet that may warrant further investigation from management.

Reference no: EM132066045

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