Perform a horizontal analysis of the MLC balance sheet (Table 4-4).

a. Compare assets, liabilities, and owners equity from one year to the next.

b. Is the corporation better off in 2013 or 2012?

TABLE 4-4 Moderately Large Corporation Consolidated Balance Sheet Moderately Large Corporation Consolidaed Balance Sheet (in thousands except share data) Fiscal Year Ended Dec. 31, 2013 Dec. 31, 2012 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes, net $1,369 1,008 1,489 157 $1,427 876 481 126 4,066 3,137 168 7,371 2,950 2,287 161 $5,398 Total current assets Property, plant and equipment, net Other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Accrued taxes Current portion of long-term debt $429 104 132 89 754 2,630 3,384 $242 98 141 82 563 1,830 2,392 Total current liabilities Long-term debt Total liabilities Shareholders' equity: 350 350 Common stock ($0.1 par value)-authorized, 4,000,000 shares; issued and outstanding, 3,500,000 Paid-in capital in excess of par Retained earnings 2,415 241 3,006 $5,398 2,415 1,222 3,987 Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $7,371