Balance sheet data for the Dover Hot Tub Company on December 31,the end of the f
ID: 2457704 • Letter: B
Question
Balance sheet data for the Dover Hot Tub Company on December 31,the end of the fiscal year are as follows:
2008 2007
Currentassets 768,000 250,000
Property, plant andequipment 336,000 650,000
Intangibleassets 96,000 100,000
Currentliabilities 270,000 175,000
Long-termliabilities 300,000 255,000
Commonstock 60,000 70,000
Retainedearnings 570,000 500,000
Prepare a comparative balance sheet for 2008 and 2007,stating each asset as a percent of total assets and each liabilityand stockholders’ equity item as a percent of the totalliabilities and stockholders’ equity. Round to onedecimal place.
(Text notes: Retained earnings, Dec. 31, 2008,47.5%)
Explanation / Answer
Comparative Balance Sheets of Jltd.
as on 31 Dec 2007 and 2008
2008
% of total
2007
% of total
2008
2007
ASSETS
Current Assets
768,000
64%
250,000
25%
Fixed Assets
Property & Equipment net
336,000
28%
650,000
65%
Intangible Assets
96,000
8%
100,000
10%
TotalAssets
$1,200,000
100%
$1,000,000
100%
Liabilities:
Current Liabilities
270,000
23%
175,000
18%
long term liability
300,000
25%
255,000
26%
Common stock
60,000
5%
70,000
7%
Retained Earning
570,000
48%
500,000
50%
Total Liabilities&
Shareholder'sfund
$1,200,000
100%
$1,000,000
100%
Comparative Balance Sheets of Jltd.
as on 31 Dec 2007 and 2008
2008
% of total
2007
% of total
2008
2007
ASSETS
Current Assets
768,000
64%
250,000
25%
Fixed Assets
Property & Equipment net
336,000
28%
650,000
65%
Intangible Assets
96,000
8%
100,000
10%
TotalAssets
$1,200,000
100%
$1,000,000
100%
Liabilities:
Current Liabilities
270,000
23%
175,000
18%
long term liability
300,000
25%
255,000
26%
Common stock
60,000
5%
70,000
7%
Retained Earning
570,000
48%
500,000
50%
Total Liabilities&
Shareholder'sfund
$1,200,000
100%
$1,000,000
100%
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