(Horizontal and Vertical Analysis) Presented on page 1338 are comparative balance sheets for the Yevette Company.

Instructions (Round to two decimal places.)

(a) Prepare a comparative balance sheet of Yevette Company showing the percent each item is of the total assets or total liabilities and stockholders' equity.

(b) Prepare a comparative balance sheet of Yevette Company showing the dollar change and the per- cent change for each item.

(c) Of what value is the additional information provided in part (a)?

(d) of what value is the additional information provided in part (b)?

Transcribed Image Text:

YEVETTE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2007 AND 2006 December 31 2007 2006 Assets Cash Accounts receivable (net) $ 180,000 220,000 $ 275,000 155,000 Short-term investments Inventories Fixed assets 270,000 150,000 960,000 980,000 Prepaid expense Accumulated depreciation 25,000 25,000 2,685,000 1,950,000 (1,000,000) (750,000) $3,340,000 $2,785,000 Liabilities and Stockholders' Equity Accounts payable $ 50,000 $ 75,000 Accrued expenses 170,000 200,000 Bonds payable 500,000 190,000 Capital stock 2,100,000 1,770,000 Retained earnings 520,000 550,000 $3,340,000 $2,785,000