Question
Rubber Chicken Products Incorporated reports the following balance sheet for 2019 and 2020. Required Using the following information, perform a horizontal analysis for 2020: Rubber
Rubber Chicken Products Incorporated reports the following balance sheet for 2019 and 2020.
Required Using the following information, perform a horizontal analysis for 2020:
| Rubber Chicken Products Incorporated | ||||
| Comparative Balance Sheet | ||||
| 31-Dec-20 | ||||
| Increase (Decrease) | ||||
| Assets | 2020 | 2019 | Dollar Amount | % |
| Cash | $ 80,000 | $ 95,000 |
|
|
| Accounts Receivable | $ 47,000 | $ 33,000 |
|
|
| Total Current Assets | $ 127,000 | $ 128,000 |
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|
|
|
| |||
| Property, plant and equipment, net | $ 220,000 | $ 199,000 |
|
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| Loans Receivable | $ 85,000 | $ 61,000 |
|
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| Total Assets | $ 432,000 | $ 388,000 |
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| Liabilities | ||||
| Accounts Payable | $ 52,000 | $ 48,000 |
|
|
| Bank Loan | $ 75,000 | $ 48,000 |
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| Shareholder Equity | ||||
| Common Shares | $ 75,000 | $ 75,000 |
|
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| Retained Earning | $ 230,000 | $ 217,000 |
|
|
| Total Shareholders Equity | $ 305,000 | $ 292,000 |
|
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| Total Liabilities & Shareholder's Equity | $ 432,000 | $ 388,000 |
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|
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
3rd Edition
0136946690, 978-0136946694
