B:
(a) Use the following financial information to calculate the owner's equity and prepare a balance sheet with vertical analysis as of December 31, 2018, for Victory Lane Sporting Goods, a sole proprietorship owned by Kyle Pressman: current assets, $157,700; property, plant, and equipment, $42,000; investments and other assets, $35,800; current liabilities, $21,300; and long- term liabilities, $54,400. (Round percents to one decimal.) Victory Lane Sporting Goods Balance Sheet December 31, 2018 Assets Liabilities & Owner's Equity Current Assets % Current Liabilities % Property, plant, Equipment % Long-Term Liabilities % Investments & Other Assets % Total Liabilities % Total Assets A % $ % Owners Equity Total Liabilities & Owner's Equity $ % (b) The following financial information is for Victory Lane Sporting Goods as of December 31, 2019: current assets, $176,300; property, plant, and equipment, $43,500; investments and other assets, $39,300; current liabilities, $27,800; and long-term liabilities, $53,000. Calculate the owner's equity for 2019 and prepare a comparative balance sheet with horizontal analysis for 2018 and 2019. (Round percents to one decimal.) Victory Lane Sporting Goods Comparative Balance Sheet December 31, 2018 and 2019 Assets Increase (Decrease) Amount Percent 2019 2018 Current Assets A $ % Property, Plant, Equipment A % 2 $ Investments & Other Assets $ % $ $ Total Assets A A % Liabilities & Owner's Equity Increase (Decrease) Amount Percent 2019 2018 Current Liabilities $ % Long-Term Liabilities A % A Total Liabilities $ 2 2 % Owners Equity A % " Total Liability & Owner's Equity % Use the consolidated balance sheets which give historical data for a particular business. CONSOLIDATED BALANCE SHEETS (in millions) February 1, 2014 $2,373 458 5,757 440 ASSETS Current Assets: Cash and Cash Equivalents Receivables Merchandise Inventories Prepaid Expenses and Other Current Assets Total Current Assets Property and Equipment-Net Goodwill Other Intangible Assets-Net Other Assets Total Assets February 2, 2013 $1,826 381 5,408 351 7,966 8,196 3,743 561 9,028 7,930 3,743 527 746 615 $21,634 $20,991 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-Term Debt Merchandise Accounts Payable Accounts Payable and Accrued Liabilities Income Taxes Deferred Income Taxes Total Current Liabilities Long-Term Debt February 1, 2014 $473 1,701 2,710 372 February 2, 2013 $124 1,579 2,610 355 300 407 5,075 5,556 6,728 6,806 Deferred Income Taxes Other Liabilities Shareholders' Equity Total Liabilities and Shareholders' Equity 1,273 1,658 6,249 $21,634 1,238 1,821 6,051 $20,991 (a) Prepare a horizontal analysis of the Current Assets section comparing February 2, 2013 and February 1, 2014. (Round percents to one decimal place.) Comparative Balance Sheet February 1, 2014 and February 2, 2013 Increase (Decrease) (in $ millions) 2014 2013 Amount Percent Current Assets Cash and Cash Equivalents $ % $ $ Receivables % Merchandise Inventories $ $ $ $ $ $ % Prepaid Expenses and Other Current Assets % Total Current Assets $ % (b) Prepare a vertical analysis of the Current Liabilities section for February 1, 2014. (Round percents to one decimal place.) Balance Sheet February 1, 2014 Current Liabilities (in $ millions) Percent Short-Term Debt ta % Merchandise Accounts Payable % $ $ Accounts Payable and Accrued Liabilities % Income Taxes % Deferred Income Taxes A % tal Current Liabilities %
