Question no 7: 6 Marks The comparative balance sheet of Ferry Company appears below: FERRY COMPANY Comparative Balance Sheet December 31, ...........Assets 2017 2018 Current assets ........ $ 322 $280 Plant assets... 678 520 Total assets . $1,000 $800 Liabilities and stockholders' equity Current liabilities . $ 180 $120 Long-term debt . 240 160 Common stock .. 320 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,000 $800 Instructions: (a) Using horizontal analysis, show the percentage change for each balance sheet item using 2004 as a base year. (b) Using vertical analysis, prepare a common size comparative balance sheet. Solution