Suppose the comparative balance sheets of Splish Brothers Inc. are presented her

Question

Suppose the comparative balance sheets of Splish Brothers Inc. are presented here. SPLISH BROTHERS INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,580 $8,770 Property, plant, and equipment (net) 1,810 1,800 Other assets 1,540 1,670 Total assets $12,930 $12,240 Liabilities and Stockholders' Equity Current Liabilities $3,150 $3,320 Long-term liabilities 1,320 1,370 Stockholders’ equity 8,460 7,550 Total liabilities and stockholders' equity $12,930 $12,240 (a) Prepare a horizontal analysis of the balance sheet data for Splish Brothers, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

Explanation / Answer

Comparative Balance Sheet

May 31, 2017 and 2016

Increase or (Decrease)

Amount

Increase or (Decrease)

Percent

* 9580 - 8770 = 810

(810/8770) * 100 = 9.2%

Particulars 2017($) 2016($)

Increase or (Decrease)

Amount

Increase or (Decrease)

Percent

Assets Current Assets 9580 8770 810* 9.2% Property, Plant & Equipment 1810 1800 10 0.6% Other Assets 1540 1670 (130) (7.8)% Total Assets 12930 12240 690 5.6% Liabilities & Stockholder's Equity Current Liabilities 3150 3320 (170) (5.1)% Long Term Liabilities 1320 1370 (50) (3.6)% Stockholder's Equity 8460 7550 910 12.0% Total Liabilities & Stockholder's Equity 12930 12240 690 5.6%

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