Exercise 13-5

Suppose the comparative balance sheets of Tamarisk, Inc. are presented here.

TAMARISK, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,630 $8,790 Property, plant, and equipment (net) 2,020 1,860 Other assets 1,540 1,780 Total assets $13,190 $12,430 Liabilities and Stockholders' Equity Current Liabilities $3,290 $3,400 Long-term liabilities 1,310 1,350 Stockholders equity 8,590 7,680 Total liabilities and stockholders' equity $13,190 $12,430

(a) Prepare a horizontal analysis of the balance sheet data for Tamarisk, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

TAMARISK, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Increase (Decrease) Percentage Change from 2013 Assets Current Assets $9,630 $8,790 $ % Property, plant, and equipment (net) 2,020 1,860 % Other assets 1,540 1,780 % Total assets $13,190 $12,430 $ % Liabilities and Stockholders' Equity Current Liabilities $3,290 $3,400 $ % Long-term liabilities 1,310 1,350 % Stockholders equity 8,590 7,680 % Total liabilities and stockholders' equity $13,190 $12,430 $ %

(b) Prepare a vertical analysis of the balance sheet data for Tamarisk for 2017.

TAMARISK, INC. Condensed Balance Sheet May 31, 2017 For the Month Ended May 31, 2017 For the Year Ended May 31, 2017 $ (in millions) Percent Assets Current Assets $9,630 % Property, plant, and equipment (net) 2,020 % Other assets 1,540 % Total assets $13,190 % Liabilities and Stockholders' Equity Current Liabilities $3,290 % Long-term Liabilities 1,310 % Stockholders equity 8,590 % Total liabilities and stockholders' equity $13,190 %

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