Exercise 14-3 The comparative condensed balance sheets of Gurley Corporation are
ID: 2414093 • Letter: E
Question
Exercise 14-3
The comparative condensed balance sheets of Gurley Corporation are presented below.
GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31
2017
2016
(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%.)
2017
2016
Increase
(Decrease)
Percentage
Change from 2016
Assets
Current assets
$ 73,500
$ 78,400
Property, plant & equipment (net)
98,400
91,600
Intangibles
Total assets
Liabilities and stockholders' Equity
Current liabilities
$ 40,800
$ 49,800
Long-term liabilities
144,800
149,200
Stockholders' equity
Total liabilities and stockholders' equity
(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%.)
Amount
Percent
Assets
Current assets
$ 73,500
Property, plant, and equipment (net)
98,400
Intangibles
Total assets
Liabilities and stockholders' equity
Current liabilities
$ 40,800
Long-term liabilities
144,800
Stockholders' equity
Total liabilities and stockholders' equity
GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31
2017
2016
Assets Current assets $ 73,500 $ 78,400 Property, plant, and equipment (net) 98,400 91,600 Intangibles 28,400 41,400 Total assets $ 200,300 $ 211,400 Liabilities and stockholders’ equity Current liabilities $ 40,800 $ 49,800 Long-term liabilities 144,800 149,200 Stockholders’ equity 14,700 12,400 Total liabilities and stockholders’ equity $ 200,300 $ 211,400Explanation / Answer
Answer a)-
b)-
GURLEY CORPORATION Horizontal Analysis Particulars 2017 2016 Change Change $ $ $ % Assets:- Current Assets 73500 78400 -4900 -6.3 Property, plant & equipment (net) 98400 91600 6800 7.4 Intangibles 28400 41400 -13000 -31.4 Total assets 200300 211400 -11100 -5.3 Liabilities and stockholders' Equity:- Current liabilities 40800 49800 -9000 -18.1 Long-term liabilities 144800 149200 -4400 -2.9 Stockholders' equity 14700 12400 2300 18.5 Total liabilities and stockholders' equity 200300 211400 -11100 -5.3Related Questions
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