Question Content Area

The balance sheet data of Randolph Company for $2$ recent years are as follows:

Assets: Year $2$ Year $1$

Current assets $$445$ $$280$

Plant assets $680520$

Total assets $$1,125$ $$800$

Liabilities and stockholders' equity: Year $2$ Year $1$

Current liabilities $$285$ $$120$

Long$-$term debt $255160$

Common stock $325320$

Retained earnings $260200$

Total liabilities and stockholders' equity $$1,125$ $$800$

Question Content Area

a$.$ Using horizontal analysis, show the percentage change for each balance sheet item using Year $1$ as the base year. If required, round percentage to one decimal place. If required, use the minus sign to indicate decreases in amounts and percents $($negative values$).$

Randolph Company

Comparative Balance Sheet

For the Years Ended December $31,$ Year $2$ and Year $1$

Line Item Description Year $2$ Year $1$ Increase$/$

Decrease

Amount Increase$/$

Decrease

Percentage

Assets

Current assets $$445$ $$280$ $Current assets

Current assets

$\%$

Plant assets $680520$ Plant assets

Plant assets

$\%$

Total assets $$1,125$ $$800$ $Total assets

Total assets

$\%$

Liabilities and Stockholders' Equity

Current liabilities $$285$ $$120$ $Current liabilities

Current liabilities

$\%$

Long$-$term debt $255160$ Long$-$term debt

Long$-$term debt

$\%$

Common stock $325320$ Common stock

Common stock

$\%$

Retained earnings $260200$ Retained earnings

Retained earnings

$\%$

Total liabilities and stockholders' equity $$1,125$ $$800$ $Total liabilities and stockholders' equity

Total liabilities and stockholders' equity

$\%$

Question Content Area

b$.$ Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place.

Randolph Company

Comparative Balance Sheet

For the Years Ended December $31,$ Year $2$ and Year $1$

Line Item Description Year $2$

Amount Year $2$

Percent Year $1$

Amount Year $1$

Percent

Assets

Current assets $$445$ Current assets

$\%$ $$280$ Current assets

$\%$

Plant assets $680$ Plant assets

$520$ Plant assets

Total assets $$1,125$ Total assets

$\%$ $$800$ Total assets

$\%$

Liabilities and Stockholders' Equity

Current liabilities $$285$ Current liabilities

$\%$ $$120$ Current liabilities

$\%$

Long$-$term debt $255$ Long$-$term debt

$160$ Long$-$term debt

Common stock $325$ Common stock

$320$ Common stock

Retained earnings $260$ Retained earnings

$200$ Retained earnings

Total liabilities and stockholders' equity $$1,125$ Total liabilities and stockholders' equity

$\%$ $$800$ Total liabilities and stockholders' equity

$\%$