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YEAR 1 YEAR 2 ASSETS CURRENT ASSETS Cash 1,669,560 2,896,540 Accounts Receivable 740,000 850,000 Allowance for doubtful accounts -16,000 -20,000 Merchandise Inventory 470,000 610,000 Supplies 70,000 93,000 Prepaid Rent 45,000 10,000 TOTAL CURRENT ASSETS 2,978,560 4,439,540

YEAR 1 YEAR 2 ASSETS CURRENT ASSETS Cash 1,669,560 2,896,540 Accounts Receivable 740,000 850,000 Allowance for doubtful accounts -16,000 -20,000 Merchandise Inventory 470,000 610,000 Supplies 70,000 93,000 Prepaid Rent 45,000 10,000 TOTAL CURRENT ASSETS 2,978,560 4,439,540

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 19E: (Appendix 8.1) Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are...
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With the given statement of financial position below, conduct a vertical analysis.
YEAR 1 YEAR 2 ASSETS CURRENT ASSETS Cash 1,669,560 2,896,540 Accounts Receivable 740,000 850,000 Allowance for doubtful accounts -16,000 -20,000 Merchandise Inventory 470,000 610,000 Supplies 70,000 93,000 Prepaid Rent 45,000 10,000 TOTAL CURRENT ASSETS 2,978,560 4,439,540 NON-CURRENT ASSETS Store Equipment 1,000,000 1,200,000 Accumulated Depreciation- Store Equipment -265,000 -300,000 TOTAL NON-CURRENTS ASSETS 735,000 900,000 TOTAL ASSETS 3,713,560 5,339,540 LIABILITIES CURRENT LIABILITIES Accounts Payable 1,090,000 1,000,000 Salaries Payable 36,000 25,000 Utilities Payable 12,000 10,500 TOTAL CURRENT LIABILITIES 1,138,000 1,035,500 NON-CURRENT LIABILITIES Notes Payable 400,000 356,000 TOTAL NON-CURRENT LIABILITIES 400,000 356,000 TOTAL LIABILITIES 1,538,000 1,391,500 OWNER'S EQUITY Heels & Feels, Capital 2,175,560 3,948,040 TOTAL LIABILITIES & OWNER'S EQUITY 3,713,560 5,339,540
Transcribed Image Text:YEAR 1 YEAR 2 ASSETS CURRENT ASSETS Cash 1,669,560 2,896,540 Accounts Receivable 740,000 850,000 Allowance for doubtful accounts -16,000 -20,000 Merchandise Inventory 470,000 610,000 Supplies 70,000 93,000 Prepaid Rent 45,000 10,000 TOTAL CURRENT ASSETS 2,978,560 4,439,540 NON-CURRENT ASSETS Store Equipment 1,000,000 1,200,000 Accumulated Depreciation- Store Equipment -265,000 -300,000 TOTAL NON-CURRENTS ASSETS 735,000 900,000 TOTAL ASSETS 3,713,560 5,339,540 LIABILITIES CURRENT LIABILITIES Accounts Payable 1,090,000 1,000,000 Salaries Payable 36,000 25,000 Utilities Payable 12,000 10,500 TOTAL CURRENT LIABILITIES 1,138,000 1,035,500 NON-CURRENT LIABILITIES Notes Payable 400,000 356,000 TOTAL NON-CURRENT LIABILITIES 400,000 356,000 TOTAL LIABILITIES 1,538,000 1,391,500 OWNER'S EQUITY Heels & Feels, Capital 2,175,560 3,948,040 TOTAL LIABILITIES & OWNER'S EQUITY 3,713,560 5,339,540
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