Explanation Given Information: The comparative balance sheet of Calypso Industries, Inc. for December 31 , 2015 is: Formula used: Follow these steps to prepare a horizontal analysis of a balance sheet: Step 1 : Prepare a comparative balance sheet with the current period listed first and the previous period listed next. Step 2 : Name the next two columns as: Increase ( Decrease ) Amount Percent Step 3 : Compute the dollar difference between the current and previous periods and note in the amount column. Enter all decreases in the parentheses. Step 4 : Compute the percent change using the percentage formula: Percent change ( rate ) = Amount of change, Step3 ( portion ) Previous period amount ( base ) Step 5 : Note the percent change in the percent column. Again, enter all decreases in the parentheses. Compute the amount increase or decrease by subtracting current period amount from the previous period amount. 2016 amount − 2015 amount = 8 , 700 − 5 , 430 = $ 3 , 270 All other increase and decrease will be computed in the same way. Calculation for the year 2016 : Compute total current assets by substituting cash, accounts receivables, notes receivables and supplies: Total Current Assets = Cash + Accounts receivables + Notes Receivables + Supplies = 8 , 700 + 23 , 110 + 2 , 900 + 4 , 540 = $ 39 , 250 Compute total of Property, Plant and Equipment by substituting land, buildings and machinery and equipment: Total of Property, Plant and Equipment = Land + Building + Machinery and Equipment = 34 , 000 + 76 , 300 + 54 , 700 = $ 165 , 000 Compute Total Assets by substituting total current assets, total property plant and equipment and investments: Total Assets = Total Current Assets + Total of Property, Plant and Equipment + Invetments and other Assets = 39 , 250 + 165 , 000 + 54 , 230 = $ 258 , 480 Compute Total Current Liabilities by substituting accounts payable and salaries payable: Total Current Liabilities = Accounts payable + Salaries payable = 15 , 330 + 7 , 680 = $ 23 , 010 Compute Total Liabilities by substituting total current liabilities and total long-term liabilities: Total Liabilities = Total Current Liabilities + Total long-term liabilities = 26 , 500 + 67 , 000 = $ 93 , 500 Compute Total Liabilities and Stockholder’s Equity by substituting total liabilities, common stock and retained earnings: Total Liabilities and Stockholder’s Equity = Total Liabilities + Common stock+Retained Earnings = 108 , 420 + 130 , 060 + 20 , 000 = $ 258 , 480 Calculation for the year 2015 : Compute total current assets by substituting cash, accounts receivables, notes receivables and supplies: Total Current Assets = Cash + Accounts receivables + Notes Receivables + Supplies = 5 , 430 + 18 , 450 + 3 , 400 + 3 , 980 = $ 31 , 260 Compute total of Property, Plant and Equipment by substituting land, buildings and machinery and equipment: Total of Property, Plant and Equipment = Land + Building + Machinery and Equipment = 34 , 000 + 79 , 800 + 48 , 900 = $ 162 , 700 Compute Total Assets by substituting total current assets, total property plant and equipment and investments: Total Assets = Total Current Assets + Total of Property, Plant and Equipment + Invetments and other Assets = $ 31 , 260 + 162 , 700 + 49 , 810 = $ 243 , 770 Compute Total Current Liabilities by substituting accounts payable and salaries payable: Total Current Liabilities = Accounts payable + Salaries payable = 19 , 650 + 7 , 190 = 26 , 840 Compute Total Liabilities by substituting total current liabilities and total long-term liabilities: Total Liabilities = Total Current Liabilities + Total long-term liabilities = 26 , 840 + 87 , 760 = $ 114 , 600 Compute Total Liabilities and Stockholder’s Equity by substituting total liabilities, common stock and retained earnings: Total Liabilities and Stockholder’s Equity = Total Liabilities + Common stock+Retained Earnings = 114 , 600 + 120 , 170 + 9 , 000 = $ 243 , 770 The required balance sheet is, Calypso Industries, Inc

Contemporary Mathematics for Business & Consumers

8th Edition

ISBN: 9781305585447

Author: Robert Brechner, Geroge Bergeman

Publisher: Cengage Learning

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Chapter 15.I, Problem 3TIE

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The complete balance sheet of provided comparative balance sheet of Calypso Industries, Inc. for December 31,2015 and 2016 with horizontal analysis.

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Chapter 15.I, Problem 2TIE

Chapter 15.I, Problem 1RE

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Chapter 15 Solutions

Contemporary Mathematics for Business & Consumers

Ch. 15.I - Use the following financial information to prepare...Ch. 15.I - Prob. 2TIE Ch. 15.I - Prob. 3TIE Ch. 15.I - Prob. 1RE Ch. 15.I - Prob. 2RE Ch. 15.I - Prob. 3RE Ch. 15.I - Prob. 4RE Ch. 15.I - Prob. 5RE Ch. 15.I - Prob. 6RE Ch. 15.I - Calculate the following values according to the...

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The complete balance sheet of provided comparative balance sheet of Calypso Industries, Inc. for December 31 , 2015 and 2016 with horizontal analysis.

Solution Summary: The author analyzes the comparative balance sheet of Calypso Industries, Inc. for December 31,2015 and 2016 with horizontal analysis.

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The complete balance sheet of provided comparative balance sheet of Calypso Industries, Inc. for December 31,2015 and 2016 with horizontal analysis.

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Chapter 15 Solutions