Problem 13-17A Horizontal analysis Financial statements for Allendale Company follow. LO 13-1 CHECK FIGURES Total assets: +11.1% Total liabilities: +14.4% ALL ENDALE COMPANY Balance Sheets As of December 31 Year 4 Year 3 $ 40,000 20,000 54,000 135,000 25,000 274,000 27,000 270,000 29,000 $600,000 $ 36,000 6,000 46,000 143,000 10,000 241,000 20,000 255,000 24,000 $540,000 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders'Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock par value $10,4% cumulative, nonparticipating: 8,000 shares authorized and issued) Common stock no par; 50,000 shares authorized: 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders equity $ 17,000 113,800 21,000 151,800 $ 6,000 100,000 15,000 121,000 100,000 32,000 132,000 283,800 100,000 27,000 127,000 248,000 80,000 80,000 156,200 316,200 $600,000 80,000 80,000 132,000 292,000 $540,000 ALLENDALE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Year 4 Year 3 $230,000 8,000 238,000 $210,000 5,000 215,000 Revenues Sales (net) Other revenues Total revenues Expenses Cost of goods sold Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 120,000 55,000 8,000 23,000 206,000 32,000 132,000 3.200 4,600 $156,200 103,000 50,000 7.200 22,000 182,200 32,800 107.000 3,200 4,600 $132,000 Required Prepare a horizontal analysis of the balance sheet and income statement for Year 4 and Year 3. Round percentages to one decimal point. Problem 13-18A Vertical analysis LO 13-1 excel Required Use the financial statements for Allendale Company from Problem 13-17A to perform a vertical analy sis of both the balance sheets and income statements for Year 4 and Year 3. Round computations to two decimal points. CHECK FIGURE Year 4 Retained earnings: 26.03%