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Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

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BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

a. Use the following financial information to calculate the owner's equity and prepare a balance sheet with vertical analysis as of December 31, 2014, for Uniflex Fabricators, Inc., a sole proprietorship owned by Paul Provost: current assets, $132,500; property, plant, and equipment. $88,760; investments and other assets. $32,400; current liabilities. $51,150; and long-term liabilities, $87,490.

Uniflex Fabricators, Inc.

Balance Sheet

As of December 31, 2014

b. The following financial information is for Uniflex Fabricators, Inc., as of December 31, 2015. Calculate the owner’s equity for 2015 and prepare a comparative balance sheet with horizontal analysis for 2014 and 2015: current assets. $154,300; property, plant, and equipment, $124,650; investments and other assets, $20,000; current liabilities, $65,210; and long-term liabilities. $83,800.

Uniflex Fabricators, Inc.

Comparative Balance Sheet

As of December 31, 2014 and 2015

(a)

To determine

To calculate: The owner’s equity and prepare a balance sheet of Uniflex Fabricators, Inc. for December 31,2014, a sole proprietorship owned by Paul Provost if current asset is $132,500, property, plant and equipment is $88,760, investments and other assets is $32,400, current liabilities is $51,150 and long-term liabilities is $87,490.

Explanation

Given Information:

Uniflex Fabricators, Inc. for December 31,2014, a sole proprietorship’s the current asset is $132,500, property, plant and equipment is $88,760, investments and other assets is $32,400, current liabilities is $51,150 and long-term liabilities is $87,490.

Formula used:

Follow the steps to prepare a vertical analysis of a balance sheet,

Step 1: Using the percentage formula, Rate=Portion÷Base, to compute the percentage of each item on the balance sheet. Use each item as the portion and total assets as the base.

Step 2: Round each answer to the nearest tenth of a percent.

Step 3: Write the percent of each balance sheet item in a column to the right of the monetary amount.

Calculation:

Consider Uniflex Fabricators, Inc. for December 31,2014, a sole proprietorship’s the current asset is $132,500, property, plant and equipment is $88,760, investments and other assets is $32,400, current liabilities is $51,150 and long-term liabilities is $87,490.

Compute % of Current Assets by dividing the current asset with total assets:

% of Current Assets=Current AssetTotal assets=132,500253,600=52.2%

Compute % of total of Property, Plant and Equipment by diving property, plant and equipment with total assets.

% of Total of Property, Plant and Equipment=Property, Plant and EquipmentTotal Assets=88,760253,660=35%

Compute % of Total Current Liabilities by dividing current liabilities with total liabilities and owner’s equity

% of Total Current Liabilities=Current liabilitiesTotal Assets=51,150253,660=20.2%

Compute % of long-term liabilities by dividing long-term liabilities with total liabilities and owner’s equity

% of long-term liabilities=Long-term liabilitiesTotal assets=87,490253,660=34.5%

Compute % of total liabilities;

% of total liabilities=Total liabilitiesTotal assets=138,640253,660=54

(b)

To determine

To calculate: The owner’s equity and prepare a comparative balance sheet of Uniflex Fabricators, Inc. for December 31,2014 and 2015, if current asset is $154,300, property, plant and equipment is $124,650, investments and other assets is $20,000, current liabilities is $65,210 and long-term liabilities is $83,800.

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Sect-15.I P-8RESect-15.I P-9RESect-15.I P-10RESect-15.I P-11RESect-15.I P-12RESect-15.I P-13RESect-15.I P-14RESect-15.I P-15RESect-15.I P-16RESect-15.I P-17RESect-15.I P-18RESect-15.I P-19RESect-15.I P-20RESect-15.I P-21RESect-15.I P-22RESect-15.I P-23RESect-15.I P-24RESect-15.I P-25RESect-15.I P-26RESect-15.I P-27RESect-15.I P-28RESect-15.I P-29RESect-15.I P-30RESect-15.I P-31RESect-15.I P-32RESect-15.I P-33RESect-15.I P-34RESect-15.I P-35RESect-15.II P-4TIESect-15.II P-5TIESect-15.II P-6TIESect-15.II P-1RESect-15.II P-2RESect-15.II P-3RESect-15.II P-4RESect-15.II P-5RESect-15.II P-6RESect-15.II P-7RESect-15.II P-8RESect-15.II P-9RESect-15.II P-10RESect-15.II P-11RESect-15.II P-12RESect-15.II P-13RESect-15.II P-14RESect-15.II P-15RESect-15.III P-7TIESect-15.III P-8TIESect-15.III P-1RESect-15.III P-2RESect-15.III P-3RESect-15.III P-4RESect-15.III P-5RESect-15.III P-6RESect-15.III P-7RESect-15.III P-8RESect-15.III P-9RESect-15.III P-10RESect-15.III P-11RESect-15.III P-12RESect-15.III P-13RESect-15.III P-14RESect-15.III P-15RESect-15.III P-16RESect-15.III P-17RESect-15.III P-18RESect-15.III P-19RESect-15.III P-20RESect-15.III P-21RESect-15.III P-22RESect-15.III P-23RESect-15.III P-24RESect-15.III P-25RESect-15.III P-26RESect-15.III P-27RESect-15.III P-28RESect-15.III P-29RESect-15.III P-30RESect-15.III P-31RESect-15.III P-32RESect-15.III P-33RECh-15 P-1CRCh-15 P-2CRCh-15 P-3CRCh-15 P-4CRCh-15 P-5CRCh-15 P-6CRCh-15 P-7CRCh-15 P-8CRCh-15 P-9CRCh-15 P-10CRCh-15 P-11CRCh-15 P-12CRCh-15 P-13CRCh-15 P-14CRCh-15 P-1ATCh-15 P-2ATCh-15 P-3ATCh-15 P-4ATCh-15 P-5ATCh-15 P-6ATCh-15 P-7ATCh-15 P-8ATCh-15 P-9ATCh-15 P-10ATCh-15 P-11ATCh-15 P-12ATCh-15 P-13ATCh-15 P-14ATCh-15 P-15ATCh-15 P-16ATCh-15 P-17ATCh-15 P-18ATCh-15 P-19ATCh-15 P-20ATCh-15 P-21ATCh-15 P-22ATCh-15 P-23ATCh-15 P-24AT

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