1. Horizontal analysis . Mary Lynn Corporation has been operating for several ye
ID: 2377399 • Letter: 1
Question
1. Horizontal analysis. Mary Lynn Corporation has been operating for several years. Selected data from the 20X1 and 20X2 financial statements follow.
20X2
20X1
Current Assets
$76,000
$80,000
Property, Plant, and Equipment (net)
99,000
90,000
Intangibles
25,000
50,000
Current Liabilities
40,800
48,000
Long-Term Liabilities
143,000
160,000
Stockholders
20X2
20X1
Current Assets
$76,000
$80,000
Property, Plant, and Equipment (net)
99,000
90,000
Intangibles
25,000
50,000
Current Liabilities
40,800
48,000
Long-Term Liabilities
143,000
160,000
Stockholders
Explanation / Answer
Prepare a vertical analysis for 20X1 and 20X2.
Horizontal Analysis ............. ...........20x2 ........20x1 ... Difference.......%Change
Current Assets ............... ............$ 76,000 ...$ 80,000 .....- 4,000 ........ ...-5%*
Property, Plant, and Equipment (net) 99,000 .....90,000 .......9,000 ....... ....10%
Intangibles ............... ............. .......25,000...... 50,000 ....- 25,000 ..... ...- 50%
Total Assets .......... ......... ..........$200,000 ...$220,000 .... 20,000 .........-9.09%
Current Liabilities ............ ...............40,800 ......48,000 ....- 7,200 ..........-15%
Long-Term Liabilities ............ .........143,000 ....160,000 .. - 17,000 .........-10.63%
Total Liabilities ........ ........... .........$183,800 .$208,000 ...-24,200 .........- 11.63%
Stockholders
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