Question
I am having trouble figuring this out can someone please assist me. Here is the problem: The balance sheet and the income statement at the
I am having trouble figuring this out can someone please assist me.
Here is the problem: The balance sheet and the income statement at the top are the amounts given in the problem. Need to come up with the solution in the bottom two sections: (starting at Here is what I have done so far which I have placed in Bold.)
Total Liabilities +14.4%Total Assets +11.1% - this is what the percentages should come to.
Allendale Company | |||||
Balance Sheet as of | |||||
31-Dec | |||||
2019 | 2018 | ||||
Assets | |||||
Current Assets | |||||
Cash | 40000 | 36000 | |||
Marketable Securities | 20000 | 6000 | |||
Accounts Receivable (net) | 54000 | 46000 | |||
Inventories | 135000 | 143000 | |||
Prepaid Items | 25000 | 10000 | |||
Total Current Assets | 274000 | 241000 | |||
Investments | 27000 | 20000 | |||
Plant (net) | 270000 | 255000 | |||
Land | 29000 | 24000 | |||
Total Assets | 600000 | 540000 | |||
Liabilities and Stockholders Equity | |||||
Liabilities | |||||
Current liabilities | |||||
Notes Payable | 17000 | 6000 | |||
Accounts Payable | 113800 | 100000 | |||
Salaries Payable | 21000 | 15000 | |||
Total Current Liabilities | 151800 | 121000 | |||
Noncurrent liabilities | |||||
Bonds Payable | 100000 | 100000 | |||
Other | 32000 | 27000 | |||
Total noncurrent liabilities | 132000 | 127000 | |||
Total liabilities | 283800 | 248000 | |||
Stockholder's Equity | |||||
Preferred Stock (par value $10, 4% cumulative, nonparticipating: 8000 shares authorized and issued) | 80000 | 80000 | |||
Common Stock (no par, 50000 shares authorized, 10000 shares issued) | 80000 | 80000 | |||
Retained Earnings | 156200 | 132000 | |||
Total stockholders equity | 316200 | 292000 | |||
Total liabilities and stockholders equity | 600000 | 540000 | |||
Allendale Company | |||||
Income Statement as of | |||||
31-Dec | |||||
Revenues | 2019 | 2018 | |||
Sales (net) | 230000 | 210000 | |||
Other revenues | 8000 | 5000 | |||
total revenues | 238000 | 215000 | |||
Expenses | |||||
COGS | 120000 | 103000 | |||
Selling, general and administrative | 55000 | 50000 | |||
Interest expense | 8000 | 7200 | |||
income tax expense | 23000 | 22000 | |||
Total Expenses | 206000 | 182200 | |||
Net earnings (net income) | 32000 | 32800 | |||
Retained earnings, January 1 | 132000 | 107000 | |||
Less: preferred stock dividends | 3200 | 3200 | |||
Common stock dividends | 4600 | 4600 | |||
Retained earnings December 31 | 156200 | 132000 |
This is what I need help completing:
Horizontal Analysis of Balance Sheet The directions are to complete accounts and amounts | ||||||
2019 | 2018 | $ | % | |||
Amount | Amount | Difference | Difference | |||
Assets | ||||||
Cash | $ 40,000 | $ 36,000 | $ 4,000 | 11.11% | ||
| ||||||
Total current assets | $ 274,000 | $ 241,000 | $ 33,000 | 11.4% | ||
Investments | ||||||
Total long-term assets |
|
| ||||
Total Assets | $ 600,000 | $ 540,000 | $ 60,000 | 11.1% | ||
Liabilities | ||||||
Total current liabilities | $ 151,800 | $ 121,000 | $ 30,800 | 12.5% | ||
Total noncurrent liabilities | $ 132,000 | $ 127,000 | $ 5,000 | 10.4% | ||
Total liabilities | $ 283,800 | $ 248,000 | $ 35,800 | 11.4% | ||
Stockholders' Equity | ||||||
Total stockholders' equity | $ 316,200 | $ 292,000 | $ 24,200 | 10.8% | ||
Total Liabilities and Shareholders' Investment | $ 600,000 | $ 540,000 | $ 60,000 | 11.1% | ||
Horizontal Analysis of Income Statement | ||||||
(Income Statement) | ||||||
2019 | 2018 | |||||
Amount | Amount | Difference | % Difference | |||
Revenues | ||||||
Total Revenues | $ 238,000 | $ 215,000 | $ 23,000 | 11.06% | ||
Expenses | ||||||
Total Expenses | $ 206,000 | $ 182,200 | $ 23,800 | 11.30% | ||
Net Income |
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