Question
The following information is provided for Techno-World, a company specializing in providing Internet technology assistance for clients. See the perform a horizontal analysis of this
The following information is provided for Techno-World, a company specializing in providing Internet technology assistance for clients. See the perform a horizontal analysis of this balance sheet between 2012 and 2013.
Identify any accounts that may be questionable. Take into account technology industry trends when performing the analysis.
| 2012 | 2013 | Change Amount | Change % | |
| Cash | $1,000 | $1,200 | $200 | 20.00% |
| Accounts Receivable | 250 | 375 | $125 | 50.00% |
| Inventory | 600 | 700 | $100 | 16.67% |
| PP&E (net) | 1,500 | 1,700 | $200 | 13.33% |
| Notes Receivable | 500 | 500 | $0 | 0.00% |
| Total Assets | $3,850 | $4,475 | $625 | 16.23% |
| Accounts Payable | $700 | $900 | $200 | 28.57% |
| Other Current Liabilities | 200 | 300 | $100 | 50.00% |
| Notes Payable | 1,200 | 1,400 | $200 | 16.67% |
| Total Liabilities | $2,100 | $2,600 | $500 | 23.81% |
| Stock Outstanding | $1,000 | $1,000 | $0 | 0.00% |
| Retained Earnings | 750 | 875 | $125 | 16.67% |
| Total Shareholders' Equity | $1,750 | $1,875 | $125 | 7.14% |
| Total Liabilities and Shareholders' Equity | $3,850 | $4,475 | $625 | 16.23% |
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
