Concept explainers
a. Use the following financial information to prepare a balance sheet with vertical analysis as of October 31, 2014, for Sticks & Stones Builders Mart: cash. $45,260; accounts receivable. $267,580; merchandise inventory. $213,200; prepaid expenses. $13,400; supplies, $5,300; land. $87,600; building. $237,200; equipment, $85,630; vehicles. $54,700; computers. $31,100; investments, $53,100; accounts payable. $43,200; salaries payable. $16,500; notes payable (6-month), $102,400; mortgage payable. $124,300; notes payable (3-year), $200,000; common stock. $422,000; and retained earnings. $185,670.
Sticks & Stones Builders Mart
Balance Sheet
As of October 31,2014
b. The following financial information is for Sticks & Stones Builders Mart as of October 31,2015. Prepare a comparative balance sheet with horizontal analysis for 2014 and 2015: cash. $47,870; accounts receivable. $251,400; merchandise inventory. $223,290; prepaid expenses, $8,500; supplies. $6,430; land. $87,600; building. $234,500; equipment, $88,960; vehicles. $68,800; computers. $33,270; investments, $55,640; accounts payable. $48,700; salaries payable. $9,780; notes payable (6-month). $96,700; mortgage payable. $121,540; notes payable (3-year). $190,000; common stock. $450,000; and retained earnings. $189,540.
Sticks & Stones Builders Mart
Comparative Balance Sheet
As of October 31, 2014 and 2015
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Contemporary Mathematics for Business & Consumers
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