The balance sheet data below for Randolph Company for two recent years. Assets Year 2 Year 1 Current assets $445 $280 Plant assets 680 520 Total assets $1,125 $800 Liabilities & 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 Required: 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 Company Comparative Balance Sheet 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 6d3970fc4febfe4_1 fill in the blank 6d3970fc4febfe4_2% Plant assets 680 520 fill in the blank 6d3970fc4febfe4_3 fill in the blank 6d3970fc4febfe4_4% Total assets $1,125 $800 $fill in the blank 6d3970fc4febfe4_5 fill in the blank 6d3970fc4febfe4_6% Liabilities & stockholders' equity Current liabilities $285 $120 $fill in the blank 6d3970fc4febfe4_7 fill in the blank 6d3970fc4febfe4_8% Long-term debt 255 160 fill in the blank 6d3970fc4febfe4_9 fill in the blank 6d3970fc4febfe4_10% Common stock 325 320 fill in the blank 6d3970fc4febfe4_11 fill in the blank 6d3970fc4febfe4_12% Retained earnings 260 200 fill in the blank 6d3970fc4febfe4_13 fill in the blank 6d3970fc4febfe4_14% Total liabilities and stockholders' equity $1,125 $800 $fill in the blank 6d3970fc4febfe4_15 fill in the blank 6d3970fc4febfe4_16% b. Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place. Randolph Company Comparative Balance Sheet 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 2b0bb3f4f040039_1% $280 fill in the blank 2b0bb3f4f040039_2% Plant assets 680 fill in the blank 2b0bb3f4f040039_3% 520 fill in the blank 2b0bb3f4f040039_4% Total assets $1,125 fill in the blank 2b0bb3f4f040039_5% $800 fill in the blank 2b0bb3f4f040039_6% Liabilities & stockholders' equity Current liabilities $285 fill in the blank 2b0bb3f4f040039_7% $120 fill in the blank 2b0bb3f4f040039_8% Long-term debt 255 fill in the blank 2b0bb3f4f040039_9% 160 fill in the blank 2b0bb3f4f040039_10% Common stock 325 fill in the blank 2b0bb3f4f040039_11% 320 fill in the blank 2b0bb3f4f040039_12% Retained earnings 260 fill in the blank 2b0bb3f4f040039_13% 200 fill in the blank 2b0bb3f4f040039_14% Total liabilities and stockholders' equity $1,125 fill in the blank 2b0bb3f4f040039_15% $800 fill in the blank 2b0bb3f4f040039_16%

The balance sheet data below for Randolph Company for two recent years. Assets Year 2 Year 1 Current assets $445 $280 Plant assets 680 520 Total assets $1,125 $800 Liabilities & 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 Required: 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 Company Comparative Balance Sheet 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 6d3970fc4febfe4_1 fill in the blank 6d3970fc4febfe4_2% Plant assets 680 520 fill in the blank 6d3970fc4febfe4_3 fill in the blank 6d3970fc4febfe4_4% Total assets $1,125 $800 $fill in the blank 6d3970fc4febfe4_5 fill in the blank 6d3970fc4febfe4_6% Liabilities & stockholders' equity Current liabilities $285 $120 $fill in the blank 6d3970fc4febfe4_7 fill in the blank 6d3970fc4febfe4_8% Long-term debt 255 160 fill in the blank 6d3970fc4febfe4_9 fill in the blank 6d3970fc4febfe4_10% Common stock 325 320 fill in the blank 6d3970fc4febfe4_11 fill in the blank 6d3970fc4febfe4_12% Retained earnings 260 200 fill in the blank 6d3970fc4febfe4_13 fill in the blank 6d3970fc4febfe4_14% Total liabilities and stockholders' equity $1,125 $800 $fill in the blank 6d3970fc4febfe4_15 fill in the blank 6d3970fc4febfe4_16% b. Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place. Randolph Company Comparative Balance Sheet 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 2b0bb3f4f040039_1% $280 fill in the blank 2b0bb3f4f040039_2% Plant assets 680 fill in the blank 2b0bb3f4f040039_3% 520 fill in the blank 2b0bb3f4f040039_4% Total assets $1,125 fill in the blank 2b0bb3f4f040039_5% $800 fill in the blank 2b0bb3f4f040039_6% Liabilities & stockholders' equity Current liabilities $285 fill in the blank 2b0bb3f4f040039_7% $120 fill in the blank 2b0bb3f4f040039_8% Long-term debt 255 fill in the blank 2b0bb3f4f040039_9% 160 fill in the blank 2b0bb3f4f040039_10% Common stock 325 fill in the blank 2b0bb3f4f040039_11% 320 fill in the blank 2b0bb3f4f040039_12% Retained earnings 260 fill in the blank 2b0bb3f4f040039_13% 200 fill in the blank 2b0bb3f4f040039_14% Total liabilities and stockholders' equity $1,125 fill in the blank 2b0bb3f4f040039_15% $800 fill in the blank 2b0bb3f4f040039_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

The balance sheet data below for Randolph Company for two recent years.

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

Liabilities & 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

Required:

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 Company
Comparative Balance Sheet
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 6d3970fc4febfe4_1	fill in the blank 6d3970fc4febfe4_2%
Plant assets	680	520	fill in the blank 6d3970fc4febfe4_3	fill in the blank 6d3970fc4febfe4_4%
Total assets	$1,125	$800	$fill in the blank 6d3970fc4febfe4_5	fill in the blank 6d3970fc4febfe4_6%
Liabilities & stockholders' equity
Current liabilities	$285	$120	$fill in the blank 6d3970fc4febfe4_7	fill in the blank 6d3970fc4febfe4_8%
Long-term debt	255	160	fill in the blank 6d3970fc4febfe4_9	fill in the blank 6d3970fc4febfe4_10%
Common stock	325	320	fill in the blank 6d3970fc4febfe4_11	fill in the blank 6d3970fc4febfe4_12%
Retained earnings	260	200	fill in the blank 6d3970fc4febfe4_13	fill in the blank 6d3970fc4febfe4_14%
Total liabilities and stockholders' equity	$1,125	$800	$fill in the blank 6d3970fc4febfe4_15	fill in the blank 6d3970fc4febfe4_16%

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

Randolph Company
Comparative Balance Sheet
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 2b0bb3f4f040039_1%	$280	fill in the blank 2b0bb3f4f040039_2%
Plant assets	680	fill in the blank 2b0bb3f4f040039_3%	520	fill in the blank 2b0bb3f4f040039_4%
Total assets	$1,125	fill in the blank 2b0bb3f4f040039_5%	$800	fill in the blank 2b0bb3f4f040039_6%
Liabilities & stockholders' equity
Current liabilities	$285	fill in the blank 2b0bb3f4f040039_7%	$120	fill in the blank 2b0bb3f4f040039_8%
Long-term debt	255	fill in the blank 2b0bb3f4f040039_9%	160	fill in the blank 2b0bb3f4f040039_10%
Common stock	325	fill in the blank 2b0bb3f4f040039_11%	320	fill in the blank 2b0bb3f4f040039_12%
Retained earnings	260	fill in the blank 2b0bb3f4f040039_13%	200	fill in the blank 2b0bb3f4f040039_14%
Total liabilities and stockholders' equity	$1,125	fill in the blank 2b0bb3f4f040039_15%	$800	fill in the blank 2b0bb3f4f040039_16%

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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