Comparative Balance Sheet Analysis

Data:

• Assets (2023):
  • Cash: $100,000
  • Inventory: $80,000
  • Equipment: $200,000

• Liabilities (2023):
  • Accounts Payable: $60,000
  • Long-term Debt: $90,000

• Equity (2023):
  • Capital: $230,000

• Assets (2022):
  • Cash: $80,000
  • Inventory: $70,000
  • Equipment: $180,000

• Liabilities (2022):
  • Accounts Payable: $50,000
  • Long-term Debt: $80,000

• Equity (2022):
  • Capital: $200,000

Requirements:

1. Prepare the comparative balance sheet for 2022 and 2023.
2. Analyze the changes in financial position between the two years.
3. Discuss the implications of these changes on the company’s financial health.