HORIZONTAL ANALYSIS OF BALANCE SHEETS Consolidated balance sheets for Peach Computer appear below:

Peach Computer, Inc.

Consolidated Balance Sheets December 31, 2009 and 2008

(Dollars in thousands)

ASSETS 2009 2008 Current assets:

Cash and cash equivalents $1,203,488 $ 676,413 Short-term investments 54,368 215,890 Accounts receivable, net of allowance for doubtful accounts of $90,992 ($83,776 in 2008) 1,581,347 1,381,946 Inventories 1,088,434 1,506,638 Deferred tax assets 293,048 268,085 Other current assets 255,767 289,383 Total current assets $4,476,452 $4,338,355 Property, plant, and equipment:

Land and buildings $ 484,592 $ 404,688 Machinery and equipment 572,728 578,272 Office furniture and equipment 158,160 167,905 ASSETS 2009 2008 Leasehold improvements 236,708 261,792 $1,452,188 $1,412,657 Accumulated depreciation and amortization (785,088) (753,111)
Net property, plant, and equipment $ 667,100 $ 659,546 Other assets $ 159,194 $ 173,511 Total assets $5,302,746 $5,171,412 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities:
Short-term borrowings $ 292,200 $ 823,182 Accounts payable 881,717 742,622 Accrued compensation and employee benefits 136,895 144,779 Accrued marketing and distribution 178,294 174,547 Accrued restructuring costs 58,238 307,932 Other current liabilities 396,961 315,023 Total current liabilities $1,944,305 $2,508,085 Long-term debt 304,472 7,117 Deferred tax liabilities 670,668 629,832 Total liabilities $2,919,445 $3,145,034 Shareholders’ equity:
Common stock, no par value: 320,000,000 shares authorized; 119,542,527 shares issued and outstanding in 2009 (116,147,035 shares in 2008) $ 297,929 $ 203,613 Retained earnings 2,096,206 1,842,600 Accumulated translation adjustment (10,834) (19,835)
Total shareholders’ equity $2,383,301 $2,026,378 Total liabilities and shareholders’ equity $5,302,746 $5,171,412 Required:
. Prepare common size balance sheets for horizontal analysis.
. Indicate from what sources Peach appears to have secured the resources for its asset increase.
Exercise