Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 2014 and 2015.
Identify any accounts that may be questionable. Take into account technology industry trends when performing the analysis.
2014 | 2015 | Change Amount | Change % | |
Cash | $1,400 | $1,500 | $100 | 7.14% |
Accounts Receivable | 600 | 900 | $300 | 50.00% |
Inventory | 825 | 975 | $150 | 18.18% |
PP&E (net) | 1,800 | 1,950 | $150 | 8.33% |
Notes Receivable | 500 | 500 | $0 | 0.00% |
Total Assets | $5,125 | $5,825 | $700 | 13.66% |
Accounts Payable | $1,000 | $1,100 | $100 | 10.00% |
Other Current Liabilities | 350 | 425 | $75 | 21.43% |
Notes Payable | $1,500 | $1,750 | $250 | 16.67% |
Total Liabilities | $2,850 | $3,275 | $425 | 14.91% |
Stock Outstanding | $1,000 | $1,000 | $0 | 0.00% |
Retained Earnings | 1,275 | 1,550 | $275 | 21.57% |
Total Shareholders' Equity | $2,275 | $2,550 | $275 | 12.09% |
Total Liabilities and Shareholders' Equity | $5,125 | $5,825 | $700 | 13.66% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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