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QUESTION 13 The comparative balance sheet of Drango Company appears below: HUERTO COMPANY Comparative Balance Sheet December 31, 2007 Assets 2007 2006 Current assets $
QUESTION 13
The comparative balance sheet of Drango Company appears below:
HUERTO COMPANY
Comparative Balance Sheet
December 31, 2007
Assets
2007
2006
Current assets
$ 340
$280
Plant assets
675
520
Total assets
$1,015
$800
Liabilities and stockholders' equity
Current liabilities
$ 180
$120
Long-term debt
250
160
Common stock
325
320
Retained earnings
260
200
Total liabilities and stockholders' equity
$1,015
$800
Instructions
(a) Using horizontal analysis, show the percentage change for each balance sheet item using 2006 as a base year.
(b) Using vertical analysis, prepare a common size comparative balance sheet.
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20 points
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The Audit Committee Handbook
Authors: Louis Braiotta Jr.
4th Edition
0470226420, 978-0470226421
