Throughout the project, you have been asked a number of questions relating to the Balance Sheet of ABC Company. Using the Balance Sheet found below, perform a horizontal analysis.

Based on the inferences you make from your horizontal analysis, discuss any improvements and/or changes that may have occurred since the prior year. Consider addressing the items that the Board of Directors requested information on throughout the project: (1) Accounts Receivables and the process for uncollectible accounts; (2) Payroll Liabilities as well as other Current or Long-Term liabilities; and (3) the types of investments held by ABC Company. Keep in mind the intended audience of your presentation.

ABC COMPANY BALANCE SHEET At December 31, 20X2 and December 31, 20X1 20x2 20x1 Dollar Change Change 5 Assets Current Assets Cash and cash equivalents 3 Trading Securities Accounts receivable O Allowance for doubtful accounts 1 Accounts receivable, net 2 Inventories 3 Prepaid expenses and other receivables 4 Available for sale securities 5 Total current assets 182.225 48,000 28,000 (5,000) 23,000 2,450 143,010 39,600 19,500 (2.900) 16.600 3.600 750 14,005 234.165 200 17.750 296,625 304,550 7 Property, plant and equipment, net 8 Intangible Assets 9 Total assets 300 299,050 300 533,515 601,475 61,950 7.682 21 Liabilities and Shareholders' Equity 22 Current Liabilities 23 Salanes Payable 24 FICA-Social Security Taxes Payable 25 FICA-Medicare Taxes Payable 26 Employee Federal Income Taxes Payable 27 State Unemployment Taxes Payable 28 Federal Unemployment Taxes Payable 29 Notes payable or current portion of long-term debt 30 Accounts payable 31 Total current liabilities 85,000 10,540 2.465 8,500 756 1.797 6,000 24,000 14,030 145,375 24,000 17050 119,079 104,400 249,775 128,400 247.479 33 Long-term debt 34 Total liabilities 35 36 Shareholders' equity 37 Common stock, S10 per value; 50,000 shares authorized: 20,000 shares issued and outstanding 38 Retained earnings 39 40 Total shareholders' equity 41 Total liabilities and shareholders' equity S 200,000 151,700 200,000 86,036 351,700 601,475 286,036 533,515