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D-Mart Stores, Inc., a merchandising business, has reported the following Balance Sheet data for the two most recent years ended December 31: D-Mart Stores, Inc.
D-Mart Stores, Inc., a merchandising business, has reported the following Balance Sheet data for the two most recent years ended December 31: | |||||||||
D-Mart Stores, Inc. | |||||||||
Balance Sheet | |||||||||
As of December 31 | |||||||||
2015 | 2014 | ||||||||
Assets | |||||||||
Current Assets: | |||||||||
Cash | $116,850 | $97,050 | |||||||
Accounts receivable | $112,250 | $85,500 | |||||||
Inventory | $237,800 | $198,750 | |||||||
Prepaid insurance | $2,000 | $2,000 | |||||||
Supplies | $1,100 | $950 | |||||||
Total Current Assets | $470,000 | $384,250 | |||||||
Long Term Assets: | |||||||||
Property & Equipment | $296,000 | $146,000 | |||||||
Accumulated Depreciation - Property & Equipment | $76,400 | $31,800 | |||||||
Total Long Term Assets | $219,600 | $114,200 | |||||||
Total assets | $689,600 | $498,450 | |||||||
Liabilities | |||||||||
Short Term Liabilities: | |||||||||
Accounts payable | $107,000 | $62,700 | |||||||
Payroll liabilities | $33,300 | $29,400 | |||||||
Total Short Term Liabilities | $140,300 | $92,100 | |||||||
Long Term Liabilities: | |||||||||
Note Payable (3 year term) | $122,000 | $0 | |||||||
Note Payable (10 year term) | $305,200 | $325,800 | |||||||
Total Long Term Liabilities | $427,200 | $325,800 | |||||||
Total Liabilities | $567,500 | $417,900 | |||||||
Stockholders' Equity | |||||||||
Capital stock, $0.10 par, 100,000 shares authorized | $8,000 | $6,000 | |||||||
Additional paid in capital | $62,000 | $54,000 | |||||||
Retained earnings | $52,100 | $20,550 | |||||||
Total stockholders equity | $122,100 | $80,550 | |||||||
Total liabilities and stockholders's equity | $689,600 | $498,450 | |||||||
A) | Prepare a horizontal analysis of the Balance Sheets. | ||||||||
B) | Comment briefly on the significant changes disclosed in the analysis. | ||||||||
**Please show all formulas/equations | |||||||||
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