Concept explainers
a. Use the following financial information to prepare a balance sheet with vertical analysis as of June 30, 2015, for Stargate Industries. Inc.: cash. $44,300; accounts receivable. $127,600; merchandise inventory. $88,100; prepaid maintenance. $4,100; office supplies. $4,000; land. $154,000; building. $237,000; fixtures. $21,400; vehicles. $64,000; computers, $13,000; goodwill, $20,000; investments. $32,000; accounts payable. $55,700; salaries payable. $23,200; notes payable (6-month). $38,000; mortgage payable. $91,300; debenture bonds. $165,000; common stock. $350,000; and retained earnings. $86,300.
Stargate Industries. Inc.
Balance Sheet
June 30, 2015
b. The following financial information is for Stargate Industries as of June 30, 2016: cash. $40,200; accounts receivable. $131,400; merchandise inventory. $92,200; prepaid maintenance. $3,700; office supplies. $6,200; land. $154,000; building. $231,700; futures. $23,900; vehicles; $55,100; computers. $16,800; goodwill. $22,000; investments. $36,400; accounts payable. $51,800; salaries payable. $25,100; notes payable (6-month). $19,000; mortgage payable. $88,900; debenture bonds. $165,000; common stock. $350,000; and retained earnings. $113,800.
Prepare a comparative balance sheet with horizontal analysis for 2015 and 2016.
Stargate Industries. Inc.
Comparative Balance Sheet
June 30, 2015 and 2016
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Contemporary Mathematics for Business & Consumers
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