Assets: Year 2 Year 1 Current assets $445 $280 Plant assets 680 520 Total assets $1,125 $800 Liabilities and stockholders' equity: Current liabilities $285 $120 Long-term debt 255 160 Common stock 325 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,125 $800 a. Using horizontal analysis, show the percentage change for each balance sheet item using Year 1 as a base year. If required, round percentage to one decimal place. If required, use the minus sign to indicate decreases in amounts and percents (negative values). Randolph CompanyComparative Balance SheetFor the Years Ended December 31, Year 2 and Year 1 Assets Year 2 Year 1 Increase/ Decrease Amount Increase/ Decrease Percentage Current assets $445 $280 $fill in the blank 993da1faf023f83_1 fill in the blank 993da1faf023f83_2% Plant assets 680 520 fill in the blank 993da1faf023f83_3 fill in the blank 993da1faf023f83_4 Total assets $1,125 $800 $fill in the blank 993da1faf023f83_5 fill in the blank 993da1faf023f83_6% Liabilities & stockholders' equity Current liabilities $285 $120 $fill in the blank 993da1faf023f83_7 fill in the blank 993da1faf023f83_8% Long-term debt 255 160 fill in the blank 993da1faf023f83_9 fill in the blank 993da1faf023f83_10 Common stock 325 320 fill in the blank 993da1faf023f83_11 fill in the blank 993da1faf023f83_12 Retained earnings 260 200 fill in the blank 993da1faf023f83_13 fill in the blank 993da1faf023f83_14 Total liabilities and stockholders' equity $1,125 $800 $fill in the blank 993da1faf023f83_15 fill in the blank 993da1faf023f83_16% b. Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place. Randolph CompanyComparative Balance SheetFor the Years Ended December 31, Year 2 and Year 1 Assets Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent Current assets $445 fill in the blank f6cf25f95fdcfed_1% $280 fill in the blank f6cf25f95fdcfed_2% Plant assets 680 fill in the blank f6cf25f95fdcfed_3 520 fill in the blank f6cf25f95fdcfed_4 Total assets $1,125 fill in the blank f6cf25f95fdcfed_5% $800 fill in the blank f6cf25f95fdcfed_6% Liabilities and stockholders' equity Current liabilities $285 fill in the blank f6cf25f95fdcfed_7% $120 fill in the blank f6cf25f95fdcfed_8% Long-term debt 255 fill in the blank f6cf25f95fdcfed_9 160 fill in the blank f6cf25f95fdcfed_10 Common stock 325 fill in the blank f6cf25f95fdcfed_11 320 fill in the blank f6cf25f95fdcfed_12 Retained earnings 260 fill in the blank f6cf25f95fdcfed_13 200 fill in the blank f6cf25f95fdcfed_14 Total liabilities and stockholders' equity $1,125 fill in the blank f6cf25f95fdcfed_15% $800 fill in the blank f6cf25f95fdcfed_16%

Assets: Year 2 Year 1 Current assets $445 $280 Plant assets 680 520 Total assets $1,125 $800 Liabilities and stockholders' equity: Current liabilities $285 $120 Long-term debt 255 160 Common stock 325 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,125 $800 a. Using horizontal analysis, show the percentage change for each balance sheet item using Year 1 as a base year. If required, round percentage to one decimal place. If required, use the minus sign to indicate decreases in amounts and percents (negative values). Randolph CompanyComparative Balance SheetFor the Years Ended December 31, Year 2 and Year 1 Assets Year 2 Year 1 Increase/ Decrease Amount Increase/ Decrease Percentage Current assets $445 $280 $fill in the blank 993da1faf023f83_1 fill in the blank 993da1faf023f83_2% Plant assets 680 520 fill in the blank 993da1faf023f83_3 fill in the blank 993da1faf023f83_4 Total assets $1,125 $800 $fill in the blank 993da1faf023f83_5 fill in the blank 993da1faf023f83_6% Liabilities & stockholders' equity Current liabilities $285 $120 $fill in the blank 993da1faf023f83_7 fill in the blank 993da1faf023f83_8% Long-term debt 255 160 fill in the blank 993da1faf023f83_9 fill in the blank 993da1faf023f83_10 Common stock 325 320 fill in the blank 993da1faf023f83_11 fill in the blank 993da1faf023f83_12 Retained earnings 260 200 fill in the blank 993da1faf023f83_13 fill in the blank 993da1faf023f83_14 Total liabilities and stockholders' equity $1,125 $800 $fill in the blank 993da1faf023f83_15 fill in the blank 993da1faf023f83_16% b. Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place. Randolph CompanyComparative Balance SheetFor the Years Ended December 31, Year 2 and Year 1 Assets Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent Current assets $445 fill in the blank f6cf25f95fdcfed_1% $280 fill in the blank f6cf25f95fdcfed_2% Plant assets 680 fill in the blank f6cf25f95fdcfed_3 520 fill in the blank f6cf25f95fdcfed_4 Total assets $1,125 fill in the blank f6cf25f95fdcfed_5% $800 fill in the blank f6cf25f95fdcfed_6% Liabilities and stockholders' equity Current liabilities $285 fill in the blank f6cf25f95fdcfed_7% $120 fill in the blank f6cf25f95fdcfed_8% Long-term debt 255 fill in the blank f6cf25f95fdcfed_9 160 fill in the blank f6cf25f95fdcfed_10 Common stock 325 fill in the blank f6cf25f95fdcfed_11 320 fill in the blank f6cf25f95fdcfed_12 Retained earnings 260 fill in the blank f6cf25f95fdcfed_13 200 fill in the blank f6cf25f95fdcfed_14 Total liabilities and stockholders' equity $1,125 fill in the blank f6cf25f95fdcfed_15% $800 fill in the blank f6cf25f95fdcfed_16%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4E

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Question

Assets:	Year 2	Year 1
Current assets	$445	$280
Plant assets	680	520
Total assets	$1,125	$800

Liabilities and stockholders' equity:
Current liabilities	$285	$120
Long-term debt	255	160
Common stock	325	320
Retained earnings	260	200
Total liabilities and stockholders' equity	$1,125	$800

a. Using horizontal analysis, show the percentage change for each balance sheet item using Year 1 as a base year. If required, round percentage to one decimal place. If required, use the minus sign to indicate decreases in amounts and percents (negative values).

Randolph CompanyComparative Balance SheetFor the Years Ended December 31, Year 2 and Year 1

Assets	Year 2	Year 1	Increase/ Decrease Amount	Increase/ Decrease Percentage
Current assets	$445	$280	$fill in the blank 993da1faf023f83_1	fill in the blank 993da1faf023f83_2%
Plant assets	680	520	fill in the blank 993da1faf023f83_3	fill in the blank 993da1faf023f83_4
Total assets	$1,125	$800	$fill in the blank 993da1faf023f83_5	fill in the blank 993da1faf023f83_6%
Liabilities & stockholders' equity
Current liabilities	$285	$120	$fill in the blank 993da1faf023f83_7	fill in the blank 993da1faf023f83_8%
Long-term debt	255	160	fill in the blank 993da1faf023f83_9	fill in the blank 993da1faf023f83_10
Common stock	325	320	fill in the blank 993da1faf023f83_11	fill in the blank 993da1faf023f83_12
Retained earnings	260	200	fill in the blank 993da1faf023f83_13	fill in the blank 993da1faf023f83_14
Total liabilities and stockholders' equity	$1,125	$800	$fill in the blank 993da1faf023f83_15	fill in the blank 993da1faf023f83_16%

b. Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place.

Randolph CompanyComparative Balance SheetFor the Years Ended December 31, Year 2 and Year 1

Assets	Year 2 Amount	Year 2 Percent	Year 1 Amount	Year 1 Percent
Current assets	$445	fill in the blank f6cf25f95fdcfed_1%	$280	fill in the blank f6cf25f95fdcfed_2%
Plant assets	680	fill in the blank f6cf25f95fdcfed_3	520	fill in the blank f6cf25f95fdcfed_4
Total assets	$1,125	fill in the blank f6cf25f95fdcfed_5%	$800	fill in the blank f6cf25f95fdcfed_6%
Liabilities and stockholders' equity
Current liabilities	$285	fill in the blank f6cf25f95fdcfed_7%	$120	fill in the blank f6cf25f95fdcfed_8%
Long-term debt	255	fill in the blank f6cf25f95fdcfed_9	160	fill in the blank f6cf25f95fdcfed_10
Common stock	325	fill in the blank f6cf25f95fdcfed_11	320	fill in the blank f6cf25f95fdcfed_12
Retained earnings	260	fill in the blank f6cf25f95fdcfed_13	200	fill in the blank f6cf25f95fdcfed_14
Total liabilities and stockholders' equity	$1,125	fill in the blank f6cf25f95fdcfed_15%	$800	fill in the blank f6cf25f95fdcfed_16%

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