Comparative Balance Sheets From Get Your Motor Runnin ' Company
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When analyzing the Comparative Balance Sheets from Get Your Motor Runnin’ Company, one can see that the amount of total current assets went from $184,663 to $237,406 =, which represents a 28.56% increase in total current assets. When taking a closer look, its noticeable how accounts like Cash helped to this resultant growth in current assets by increasing itself in 34.70% (from $147,333 to $198,456). It’s also noticeable how other assets account suffered negative changes as well; in this area is remarkable the account Allowance for Uncollectible Accounts that decreased in 412.50%. Even though this represents a bad trend, it is not a determinant one for the financial status of the company. This section represents itself around 21% (18.98%…show more content… This changes are very beneficial to the financial health of the company. On the other hand, the long-term liabilities section looks that consolidated its debts with the issuance of bonds to repay all other long-term debts. The total liabilities represent the larger portion of the Liabilities and Stockholder’s Equity section with an average of 77%. The stockholder’s equity saw a total change of 37.69% increase from 2011 to 2012. Its mayor sections were Retained Earnings, with a 333.72% increase; Preferred Stock, with a 100% increase; and Paid-in Capital in excess of Par – preferred, with a 66.67% increase.
In the Comparative Income Statement for the company in question, we can determine that the main revenue source was Service Revenue, which saw an increase from 2011 to 2012 of 86.53%; but the biggest positive trend is the increase on Sales with a 217.71% increase. To this increase in sales is also associated the increase in Cost of Goods Sold. All other changes in the accounts on the report are consequent with the changes seen in the sources of income. The most noticeable positive factor is the increase of Net Income in 175.83% (from $23,100 in 2011 to $63,717 in 2012).
The comparison of company’s current ratio for both years shows an improvement in the ability to meet currently maturing obligations by going from 6.72 to 10.92. The company has also seen improvement in its instant debt-paying ability, shown by an