1. Use the balance sheet of Michigan, Inc. to complete:

• A vertical & horizontal analysis.
• calculate working capital for 2019 and 2018.

Michigan, Inc.

Comparative Balance Sheet

December 31, 2019 and 2018

2019 2018

Assets

Total Current Assets $200,000 $100,000

Property, Plant, and Equipment, Net 550,000 500,000

Other Assets 50,000 50,000

Total Assets $800,000 $650,000

Liabilities

Total Current Liabilities $150,000 $100,000

Long-term Debt 350,000 250,000

Total Liabilities 500,000 350,000

Stockholders' Equity

Total Stockholders' Equity 300,000 300,000

Total Liabilities and Stockholders' Equity $800,000 $650,000

2. Sam Sun and Ron Rain decided to form a partnership. Sam contributes $100,000 cash to the partnership. Ron is going to give $25,000 cash and an automobile with a market value of $30,000. Ron is also going to transfer the $20,000 note on the automobile to the business. The journal entries would be:

3.Sam Sun wants to go on a beach vacation and decides to take $8,000 out of the business. Ron Rain wants to go to Scotland and will take $15,000 out of the business. The journal entries would be: