Question
Below is financial information for Martini Inc. [A] Instructions: Cut and paste the schedule below into your window and complete the horizontal analysis for 2022,
Below is financial information for Martini Inc.
[A] Instructions: Cut and paste the schedule below into your window and complete the horizontal analysis for 2022, using 2021 as the base year.
| 2022 | 2021 | Amount | Percentage | |
| ASSETS | ||||
| Current Assets | $106,000 | $ 90,000 | ||
| Plant Assets (net) | 400,000 | 350,000 | ||
| Total Assets | $506,000 | $ 440,000 | ||
| LIABILITIES | ||||
| Current Liabilities | $ 99,000 | $ 65,000 | ||
| Long-term Liabilities | 122,000 | 90,000 | ||
| Total Liabilities | $221,000 | $155,000 | ||
| STOCKHOLDERS' EQUITY | ||||
| Common Stock, $1 par | $130,000 | $115,000 | ||
| Retained Earnings | 155,000 | 170,000 | ||
| Total Stockholders' Equity | $285,000 | $285,000 | ||
| Total Liabilities & Stock Equity | $506,000 | $440,000 |
[B] Instructions: Cut the schedule below and paste it in your window. Compute working capital, current ratio and the debt to asset ratio and show your work in the space provided.
| 2022 | 2021 | |
| Working Capital |
| |
| Current Ratio |
| |
| Debt to Asset Ratio |
|
[C] Has liquidity improved or worsened from 2021 to 2022? explain
[D] Has solvency improved or worsened from 2021 to 2022? explain
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Statistics Informed Decisions Using Data
Authors: Michael Sullivan III
5th Edition
9780134133539
