FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The balance sheet data of Randolph Company for two recent years appears below: 

Assets: Year 2 Year 1
Current assets $445     $280
Plant assets   680      520
Total assets $1,125      $800
     
Liabilities and 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

 

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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 CompanyComparative Balance SheetFor the Years Ended December 31, Year 2 and Year 1
Assets Year 2 Year 1 Increase/
Decrease
Amount
Increase/
Decrease
Percentage
Current assets $445 $280 $fill in the blank 993da1faf023f83_1 fill in the blank 993da1faf023f83_2%
Plant assets 680 520 fill in the blank 993da1faf023f83_3 fill in the blank 993da1faf023f83_4
Total assets $1,125 $800 $fill in the blank 993da1faf023f83_5 fill in the blank 993da1faf023f83_6%
Liabilities & stockholders' equity        
Current liabilities $285 $120 $fill in the blank 993da1faf023f83_7 fill in the blank 993da1faf023f83_8%
Long-term debt 255 160 fill in the blank 993da1faf023f83_9 fill in the blank 993da1faf023f83_10
Common stock 325 320 fill in the blank 993da1faf023f83_11 fill in the blank 993da1faf023f83_12
Retained earnings 260 200 fill in the blank 993da1faf023f83_13 fill in the blank 993da1faf023f83_14
Total liabilities and stockholders' equity $1,125 $800 $fill in the blank 993da1faf023f83_15 fill in the blank 993da1faf023f83_16%
         
 

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b.  Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place.

Randolph CompanyComparative Balance SheetFor the Years Ended December 31, Year 2 and Year 1
Assets Year 2
Amount
Year 2
Percent
Year 1
Amount
Year 1
Percent
Current assets $445 fill in the blank f6cf25f95fdcfed_1% $280 fill in the blank f6cf25f95fdcfed_2%
Plant assets 680 fill in the blank f6cf25f95fdcfed_3 520 fill in the blank f6cf25f95fdcfed_4
Total assets $1,125 fill in the blank f6cf25f95fdcfed_5% $800 fill in the blank f6cf25f95fdcfed_6%
Liabilities and stockholders' equity        
Current liabilities $285 fill in the blank f6cf25f95fdcfed_7% $120 fill in the blank f6cf25f95fdcfed_8%
Long-term debt 255 fill in the blank f6cf25f95fdcfed_9 160 fill in the blank f6cf25f95fdcfed_10
Common stock 325 fill in the blank f6cf25f95fdcfed_11 320 fill in the blank f6cf25f95fdcfed_12
Retained earnings 260 fill in the blank f6cf25f95fdcfed_13 200 fill in the blank f6cf25f95fdcfed_14
Total liabilities and stockholders' equity $1,125 fill in the blank f6cf25f95fdcfed_15% $800 fill in the blank f6cf25f95fdcfed_16%
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