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Brief Exercise 14-1 (Part Level Submission) Selected data from the comparative s

ID: 2556965 • Letter: B

Question

Brief Exercise 14-1 (Part Level Submission) Selected data from the comparative statements of financial position of Accustart Ltd. are shown below 2018 2017 2016 $75,000 454,000 695,000 Cash Accounts receivable Inventory Property, plant, and equipment Intangible assets Total assets 596,000 773,000 3,127,000 88,000 $152,000 $173,000 403,000 606,000 2,777,000 98,000 2,840,000 $4,736,000 $4,057,000 $4,064,000 Your answer is correct. Using horizontal analysis, calculate the percentage of a base-year amount, assuming 2016 is the base year. (Round answers to 1 decimal place, eg, 5.2%.) 2018 2017 2016 202.7 230.7 100 Cash 131.3 88.8 100 Accounts receivable 87.2 100 Inventory 110.1 97.8 100 Property, plant, and equipment

Explanation / Answer

2018

2017

2016

% change in 2018

% change in 2017

Cash

152000

173000

75000

-12.1%

130.7%

A/R

96000

403000

454000

-76.2%

-11.2%

Inventory

773000

606000

695000

27.6%

-12.8%

Property Plant & equipment

3127000

2777000

2840000

12.6%

-2.2%

Intangible asset

88000

98000

0

-10.2%

Infinite

Total asset

4736000

4057000

4064000

16.7%

-0.2%

% change = (next year value – base year value)/base year value

Intangible asset % change in 2017 = (98000 – 0)/0 = Infinite

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2018

2017

2016

% change in 2018

% change in 2017

Cash

152000

173000

75000

-12.1%

130.7%

A/R

96000

403000

454000

-76.2%

-11.2%

Inventory

773000

606000

695000

27.6%

-12.8%

Property Plant & equipment

3127000

2777000

2840000

12.6%

-2.2%

Intangible asset

88000

98000

0

-10.2%

Infinite

Total asset

4736000

4057000

4064000

16.7%

-0.2%

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