Problem 13-17A Horizontal analysis LO 13-1 CHECK FIGURES Financial statements for Allendale Company follow. Total assets: +11.1% Total liabilities: +14.4 % ALLENDALE COMPANY Balance Sheets As of December 31 Year 3 Year 4 Assets Current assets $ 36,000 40,000 20,000 54,000 Cash Marketable securities 6,000 46,000 Accounts receivable (net) Inventories 135,000 143,000 25,000 274,000 Prepaid items 10,000 Total current assets 241,000 Investments 27,000 270,000 20,000 255,000 Plant (net) Land 29,000 24,000 $600,000 $540,000 Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities $ 6,000 $17,000 113,800 Notes payable Accounts payable Salaries payable 100,000 21,000 151,800 15,000 121,000 Total current liabilities Noncurrent liabilities Bonds payable Other 100,000 32,000 100,000 27,000 Total noncurrent liabilities 132,000 283,800 127,000 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) 248,000 80,000 80,000 80,000 80,000 Retained eamings 156,200 132,000 292,000 $540,000 Total stockholders' equity 316,200 Total liabilities and stockholders' equity $600,000 ALLENDALE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Year 4 Year 3 Revenues $230,000 $210,000 5,000 Sales (net) Other revenues 8,000 Total revenues 238,000 215,000 Expenses Cost of goods sold Selling,general, and administrative 103,000 50,000 120,000 55,000 8,000 Interest expense 7,200 22,000 Income tax expense 23,000 Total expenses 182,200 206,000 Net earnings (net income) Retained earnings, January 1 32,800 32,000 132,000 107,000 Less: Preferred stock dividends 3,200 3,200 Common stock dividends 4,600 4,600 $156,200 $132,000 Retained earnings, December 31 Required Prepare a horizontal analysis of the balance sheet and income statement for Year 4 and Year 3. Round percentages to one decimal point