Question
In the chart below, to the right of the column of numbers are three columns with blocks to fill in. Perform a horizontal analysis and
In the chart below, to the right of the column of numbers are three columns with blocks to fill in.
Perform a horizontal analysis and put the correct answer in the appropriate blocks for only these account line items:
Cash, A/R, Accounts Payable, Other Liabilities, Sales, and Selling & Admin Exp.
When necessary round to the nearest tenth. You must use parentheses to mark a negative change. For example: a negative change from 2021 to 2022 of $30,000 would be written ($30,000)
Make sure to answer the last column - whether the change is deemed as a positive or negative based on the line item in the financial statements (for example is an increase in expenses a positive or negative variance?) You must put in the answer box, the word "positive" or "negative" . Base your answer strictly on the results of the horizontal analysis for that line item.
Dec. 31, 2021
Dec. 31, 2022
Positive or negative
Assets
Cash
$ 50,000
$ 20,000
Accts Receivable, net
25,000
15,000
Inventory
10,500
12,000
Total Current Assets
$ 85,500
$ 47,000
Property Plant & Equipment
265,600
255,000
Total Assets
$ 351,100
$ 302,000
Liabilities
Accounts Payable
$ 20,000
$ 50,000
Other liabilities
15,000
5,000
Debt
125,000
200,000
Total Liabilities
$ 160,000
$ 255,000
Sales
$ 50,000
$ 75,000
Cost of Goods Sold
27,500
38,500
Gross Profit
22,500
36,500
Selling and Administrative Exp
17,000
16,250
Net Income
$ 5,500
$ 20,250
selling & administrative exp $17,000. $16,250Net income $5,500 $20,250
In the chart below, to the right of the column of numbers are three columns with blocks to fill in.
Perform a horizontal analysis and put the correct answer in the appropriate blocks for only these account line items:
Cash, A/R, Accounts Payable, Other Liabilities, Sales, and Selling & Admin Exp.
When necessary round to the nearest tenth. You must use parentheses to mark a negative change. For example: a negative change from 2021 to 2022 of $30,000 would be written ($30,000)
Make sure to answer the last column - whether the change is deemed as a positive or negative based on the line item in the financial statements (for example is an increase in expenses a positive or negative variance?) You must put in the answer box, the word "positive" or "negative" . Base your answer strictly on the results of the horizontal analysis for that line item.
| Dec. 31, 2021 | Dec. 31, 2022 |
|
| Positive or negative |
Assets |
|
|
|
|
|
Cash | $ 50,000 | $ 20,000 |
|
|
|
Accts Receivable, net | 25,000 | 15,000 |
|
|
|
Inventory | 10,500 | 12,000 |
|
|
|
Total Current Assets | $ 85,500 | $ 47,000 |
|
|
|
Property Plant & Equipment | 265,600 | 255,000 |
|
|
|
Total Assets | $ 351,100 | $ 302,000 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Accounts Payable | $ 20,000 | $ 50,000 |
|
|
|
Other liabilities | 15,000 | 5,000 |
|
|
|
Debt | 125,000 | 200,000 |
|
|
|
Total Liabilities | $ 160,000 | $ 255,000 |
|
|
|
|
|
|
|
|
|
Sales | $ 50,000 | $ 75,000 |
|
|
|
Cost of Goods Sold | 27,500 | 38,500 |
|
|
|
Gross Profit | 22,500 | 36,500 |
|
|
|
Selling and Administrative Exp | 17,000 | 16,250 |
|
|
|
Net Income | $ 5,500 | $ 20,250 |
|
|
|
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