Reference no: EM132324967

Question

Throughout the project, you have been asked a number of questions relating to the Balance Sheet of ABC Company. Using the Balance Sheet found below, perform a horizontal analysis. Once complete, use your new version of the Balance Sheet to present and discuss the Balance Sheet of ABC Company

Based on the inferences make from your horizontal analysis, discuss any improvements and/or changes that may have occurred since the prior year.

Consider addressing the items that the Board of Directors requested information on throughout the project:

(1) Accounts Receivables and the process for uncollectible accounts;

(2) Payroll Liabilities as well as other Current or Long-Term liabilities; and

(3) the types of investments held by ABC Company. Keep in mind the intended audience of your presentation.

Prepaid expenses and other receivables 200 750 Available-for-sale securities 17,750 14,005 Total current assets $ 296,625 234,165 Property, plant and equipment, net 304,550 299,050 Intangible Assets 300 300

Total assets $ 601,475 533,515 Liabilities and Shareholders' Equity Current Liabilities Salaries Payable 85,000 61,950 FICA-Social Security Taxes Payable 10,540 7,682 FICA-Medicare Taxes Payable 2,465 1,797 Employee Federal Income Taxes Payable 8,500 6,000

State Unemployment Taxes Payable 756 540 Federal Unemployment Taxes Payable 84 60 Notes payable or current portion of long-term debt $ 24,000 24,000 Accounts payable 14,030 17,050 Total current liabilities 145,375 119,079 Long-term debt 104,400 128,400 Total liabilities $ 249,775 247,479

Shareholders' equity Common stock, $10 per value; 50,000 shares authorized; 20,000 shares issued and outstanding 200,000 200,000 Retained earnings 151,700 86,036 Total shareholders' equity 351,700 286,036 Total liabilities and shareholders' equity $ 601,475 533,515