Question
The balance sheet data below for Randolph Company for two recent years. Assets Year 2 Year 1 Current assets $445 $280 Plant assets 680 520
The balance sheet data below for Randolph Company for two recent years.
Assets | Year 2 | Year 1 |
Current assets | $445 | $280 |
Plant assets | 680 | 520 |
Total assets | $1,125 | $800 |
Liabilities & Stockholders' Equity | ||
Current liabilities | $285 | $120 |
Long-term debt | 255 | 160 |
Common stock | 325 | 320 |
Retained earnings | 260 | 200 |
Total liabilities and stockholders' equity | $1,125 | $800 |
Required:
a. Using horizontal analysis, show the percentage change for each balance sheet item using Year 1 as a 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 | ||||
December 31, Year 2 and Year 1 | ||||
Assets | Year 2 | Year 1 | Increase/Decrease Amount | Increase/Decrease Percentage |
Current assets | $445 | $280 | $ | % |
Plant assets | 680 | 520 | % | |
Total assets | $1,125 | $800 | $ | % |
Liabilities & stockholders' equity | ||||
Current liabilities | $285 | $120 | $ | % |
Long-term debt | 255 | 160 | % | |
Common stock | 325 | 320 | % | |
Retained earnings | 260 | 200 | % | |
Total liabilities and stockholders' equity | $1,125 | $800 | $ | % |
b. Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place.
Randolph Company | ||||
Comparative Balance Sheet | ||||
December 31, Year 2 and Year 1 | ||||
Assets | Year 2 Amount | Year 2 Percent | Year 1 Amount | Year 1 Percent |
Current assets | $445 | % | $280 | % |
Plant assets | 680 | % | 520 | % |
Total assets | $1,125 | % | $800 | % |
Liabilities & stockholders' equity | ||||
Current liabilities | $285 | % | $120 | % |
Long-term debt | 255 | % | 160 | % |
Common stock | 325 | % | 320 | % |
Retained earnings | 260 | % | 200 | % |
Total liabilities and stockholders' equity | $1,125 | % | $800 | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started