please see chapter 14 assigned. The file is attached. for Acct_557
please see chapter 14 assigned. The file is attached. for Acct_557
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Exercise 14-3
The comparative condensed balance sheets of Garcia Corporation are presented below.
GARCIA CORPORATION
Comparative Condensed Balance Sheets
December 31
2014
2013
Assets
Current assets
$ 76,000
$ 80,000
Property, plant, and equipment (net)
100,000
90,000
Intangibles
24,000
40,000
Total assets
$200,000
$210,000
Liabilities and stockholders’ equity
Current liabilities
$ 40,000
$ 48,000
Long-term liabilities
140,000
150,000
Stockholders’ equity
20,000
12,000
Total liabilities and stockholders’ equity
$200,000
$210,000
(a)
Prepare a horizontal analysis of the balance sheet data for Garcia Corporation using 2013 as a base.
(If amount
and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000). (20%). Round
percentages to 1 decimal place, e.g. 12.3%.)
GARCIA CORPORATION
Condensed Balance Sheets
December 31
2014
2013
Increase
(Decrease)
Percentage
Change from
2013
Assets
Current Assets
$76,000
$80,000
$
%
Property, Plant & Equipment (net)
100,000
90,000
%
Intangibles
24,000
40,000
%
Total assets
$200,000
$210,000
$
%
Liabilities and Stockholders’ Equity
Current Liabilities
$40,000
$48,000
$
%
Long-term Liabilities
140,000
150,000
%
Stockholders’ Equity
20,000
12,000
%
Total liabilities and stockholders’ equity
$200,000
$210,000
$
%
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(b)
Prepare a vertical analysis of the balance sheet data for Garcia Corporation in columnar form for 2014.
(Round
percentages to 0 decimal places, e.g. 12%.)
GARCIA CORPORATION
Condensed Balance Sheet
December 31, 2014
Amount
Percent
Assets
Current Assets
$76,000
%
Property, Plant, and Equipment (net)
100,000
%
Intangibles
24,000
%
Total assets
$200,000
%
Liabilities and Stockholders’ Equity
Current Liabilities
$40,000
%
Long-term Liabilities
140,000
%
Stockholders’ Equity
20,000
%
Total liabilities and stockholders’ equity
$200,000
%
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Exercise 14-4
The comparative condensed income statements of Hendi Corporation are shown below.
HENDI CORPORATION
Comparative Condensed Income Statements
For the Years Ended December 31
2014
2013
Net sales
$600,000
$500,000
Cost of goods sold
468,000
400,000
Gross profit
132,000
100,000
Operating expenses
60,000
54,000
Net income
$ 72,000
$ 46,000
(a)
Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2013 as a base. (Show
the amounts of increase or decrease.)
(If amount and percentage are a decrease show the numbers as
negative, e.g. -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, e.g. 12.3%.)
HENDI CORPORATION
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