Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended December 31, 2015. They have completed the balance sheet and income statement as shown.

Philadelphia Widget Corporation
Income Statement
For the year ended December 31, 2015
Revenue		$1,235,000
Cost of Goods Sold		806,356
Gross Profit		$428,644
Administrative Expenses:
Salaries	$212,450
Rent	82,500
Depreciation	24,800
Total Administrative Expense		319,750
Operating Profit		$108,894
Gain on Sale of Equipment		4,500
Interest Expense		(42,115)
Net Income		$71,279

Philadelphia Widget Corporation
Comparative Balance Sheets
December 31, 2015; 2014; and 2013
	2015		2014		2013
Cash		$119,411		$89,564		$105,644
Accounts Receivable		85,455		83,118		78,400
Inventory		41,600		48,560		62,600
Prepaid Expenses		14,500		18,100		24,000
Total Current Assets		260,966		239,342		270,644
Land		50,000		50,000		50,000
Buildings & Equipment	$182,450		$172,450		$166,800
Accumulated Depreciation	78,900	103,550	62,600	109,850	54,580	112,220
Total Assets		$414,516		$399,192		$432,864
Accounts Payable		$62,525		$51,480		$45,200
Wages Payable		4,500		4,500		1,500
Unearned Revenue		3,000
Current Portion of Long-Term Debt		50,000		50,000		50,000
Total Current Liabilities		120,025		105,980		96,700
Long-Term Debt		175,000		225,000		275,000
Common Stock, 3,500 shares outstanding	$35,000		$35,000		$35,000
Retained Earnings	84,491		33,212		26,164
Total Stockholders Equity		119,491		68,212		61,164
Total Liabilities & Equity		$414,516		$399,192		$432,864

Instructions

Prepare a horizontal analysis the two most recent years of Philadelphia Widget Corporations balance sheets.

Philadelphia Widget Corporation
Horizontal Analysis of Balance Sheet
	2015		2014		2013
Cash	$119,411	##.#%	$89,564	##.#%	$105,644
Accounts Receivable	85,455	##.#%	83,118	##.#%	78,400
Inventory	41,600	##.#%	48,560	##.#%	62,600
Prepaid Expenses	14,500	##.#%	18,100	##.#%	24,000
Total Current Assets	$260,966	##.#%	$239,342	##.#%	$270,644
Land	50,000	##.#%	50,000	##.#%	50,000
Buildings & Equipment, net	103,550	##.#%	109,850	##.#%	112,220
Total Assets	$414,516	##.#%	$399,192	##.#%	$432,864
Accounts Payable	$62,525	##.#%	$51,480	##.#%	$45,200
Wages Payable	4,500	##.#%	4,500	##.#%	1,500
Unearned Revenue	3,000
Current Portion of Long-Term Debt	50,000	##.#%	50,000	##.#%	50,000
Total Current Liabilities	$120,025	##.#%	$105,980	##.#%	$96,700
Long-Term Debt	175,000	##.#%	225,000	##.#%	275,000
Common Stock	35,000	##.#%	35,000	##.#%	35,000
Retained Earnings	84,491	##.#%	33,212	##.#%	26,164
Total Liabilities & Equity	$414,516	##.#%	$399,192	##.#%	$432,864