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Exercise 14-3 GURLEY CORPORATION Comparative Condensed Balance Sheets December 3

ID: 2413817 • Letter: E

Question

Exercise 14-3

GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31

2017

2016

2017

2016

Increase
(Decrease)

Percentage
Change from 2016

Assets

   Current assets

$ 73,500

$ 78,200

   Property, plant & equipment (net)

97,100

88,200

   Intangibles

   Total assets

Liabilities and stockholders' Equity

   Current liabilities

$ 41,000

$ 48,400

   Long-term liabilities

140,000

150,000

   Stockholders' equity

   Total liabilities and stockholders' equity

Amount

Percent

Assets

   Current assets

$ 73,500

   Property, plant, and equipment (net)

97,100

   Intangibles

Total assets

Liabilities and stockholders' equity

   Current liabilities

$ 41,000

   Long-term liabilities

140,000

   Stockholders' equity

Total liabilities and stockholders' equity

Exercise 14-3

The comparative condensed balance sheets of Gurley Corporation are presented below.

GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31

2017

2016

Assets     Current assets $ 73,500 $ 78,200     Property, plant, and equipment (net) 97,100 88,200     Intangibles 27,000 42,000       Total assets $ 197,600 $ 208,400 Liabilities and stockholders’ equity     Current liabilities $ 41,000 $ 48,400     Long-term liabilities 140,000 150,000     Stockholders’ equity 16,600 10,000       Total liabilities and stockholders’ equity $ 197,600 $ 208,400
(a)

Prepare a horizontal analysis of the balance sheet data for Gurley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
GURLEY CORPORATION
Condensed Balance Sheets

               For the Year Ended December 31                         For the Quarter Ended December 31                         December 31         

2017

2016

Increase
(Decrease)

Percentage
Change from 2016

Assets

   Current assets

$ 73,500

$ 78,200

$

%

   Property, plant & equipment (net)

97,100

88,200

%

   Intangibles

27,000 42,000

%

   Total assets

$ 197,600 $ 208,400 $

%

Liabilities and stockholders' Equity

   Current liabilities

$ 41,000

$ 48,400

$

%

   Long-term liabilities

140,000

150,000

%

   Stockholders' equity

16,600 10,000

%

   Total liabilities and stockholders' equity

$ 197,600 $ 208,400 $

%
(b)

Prepare a vertical analysis of the balance sheet data for Gurley Corporation in columnar form for 2017. (Round percentages to 1 decimal place, e.g. 12.3%.)
GURLEY CORPORATION
Condensed Balance Sheet

               For the Quarter Ended December 31, 2017                         December 31, 2017                         For the Year Ended December 31, 2017         

Amount

Percent

Assets

   Current assets

$ 73,500

%

   Property, plant, and equipment (net)

97,100

%

   Intangibles

27,000

%

Total assets

$ 197,600

%

Liabilities and stockholders' equity

   Current liabilities

$ 41,000

%

   Long-term liabilities

140,000

%

   Stockholders' equity

16,600

%

Total liabilities and stockholders' equity

$ 197,600

%

Explanation / Answer

GURLEY CORPORATION Condensed Balance Sheets December 31 2017 2016 Increase (Decrease) % change Assets: Current assets 73500 78200 -4700 -6.0% Property, plant & equipment (net) 97100 88200 8900 10.1% Intangibles 27000 42000 -15000 -35.7% Total assets 197600 208400 -10800 -5.2% Liabilities and stockholders' Equity Current liabilities 41000 48400 -7400 -15.3% Long-term liabilities 140000 150000 -10000 -6.7% Stockholders' equity 16600 10000 6600 66.0% Total liabilities and stockholders' equity 197600 208400 -10800 -5.2% b Condensed Balance Sheet December 31, 2017 Amount Percent Assets: Current assets 73500 37.2% Property, plant & equipment (net) 97100 49.1% Intangibles 27000 13.7% Total assets 197600 100.0% Liabilities and stockholders' Equity Current liabilities 41000 20.7% Long-term liabilities 140000 70.9% Stockholders' equity 16600 8.4% Total liabilities and stockholders' equity 197600 100.0%

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