Textbook Problem

Horizontal Analysis Using Balance Sheets

The consolidated 2019 and 2018 balance sheets for Butler Corporation follow.

Required:

1. Calculate the percentage that Butler’s total assets increased by during 2019 (in percentage terms. rounded to one decimal place). You do not need to include the actual dollar amounts shown above.

2. Determine whether any of the asset categories experienced larger increases than others.

3. Indicate where Butler acquired the capital to finance its asset growth.

4. Indicate whether any of the individual liability or equity items increased at a rate different from the rate at which total liabilities and equity increased.