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Using these data from the comparative balance sheet of Ramirez Company, perform

ID: 2504935 • Letter: U

Question

Using these data from the comparative balance sheet of Ramirez Company, perform horizontal analysis. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 0 decimal places, e.g. 12%.)

Increase or (Decrease)

Dec. 31, 2014

Dec. 31, 2013

Amount

Percentage

Increase or (Decrease)

Dec. 31, 2014

Dec. 31, 2013

Amount

Percentage

Accounts receivable $ 460,000 $ 400,000

$

% Inventory $ 780,000 $ 650,000

$

% Total assets $3,164,000 $2,800,000

$

%

Explanation / Answer

Hi,

Please find the answer as follows:

Thanks.

Increase or (Decrease) Dec. 31, 2014 Dec. 31, 2013 Amount Percentage Accounts receivable 4,60,000 4,00,000 60,000 15% Inventory 7,80,000 6,50,000 1,30,000 20% Total assets 31,64,000 28,00,000 3,64,000 13%