The following are balance sheets and income statements for Bu-346 Enterprises fo
ID: 2725657 • Letter: T
Question
The following are balance sheets and income statements for Bu-346 Enterprises for the years indicated. Please do a vertical analysis on the balance sheet and income statement for BOTH years. Then do a horizontal analysis for 1999 for both statements. In 2-3 sentences, comment on your findings.
Balance Sheet December 31 1999 1998
ASSETS
Cash and marketable securities $ 30,000 $ 25,000
Accounts receivable 110,000 90,000
Inventories 100,000 80,000
Total current assets 240,000 195,000
Gross plant and equipment 250,000 220,000
Less accumulated appreciation -100,000 -65,000
Net plant and equipment 150,000 155,000
Land 50,000 50,000
Total fixed assets 200,000 205,000
Total assets $ 440,000 $ 400.000
LIABILTIES AND EQUITY
Accounts payable $ 58,000 $ 50,000
Notes payable 50,000 50,000
Accrued liabilities 0 0
Total current liabilities 108,000 100,000
Long-term debt 32,000 20,000
Total liabilities 140,000 120,000
Total stockholders' equity 300,000 280,000
Total liabilities and equity $ 440,000 $ 400,000
Income Statement Year Ended Dec. 31 1999 1998
Net revenues or sales $1,100,000 $1,000,000
Cost of goods sold 700,000 650,000
Gross profit 400,000 350,000
Operating Expenses:
General and administrative 143,000 135,000
Selling and marketing 88,000 80,000
Depreciation 44,000 40,000
Operating Income 125,000 95,000
Interest 15,000 15,000
Income before taxes 110,000 80,000
Income taxes (40%) 44,000 32,000
Net income $ 66,000 43,000
Explanation / Answer
horizontal analysis for 1999 for both statements
a vertical analysis on the balance sheet and income statement for BOTH years
Column1 Column2 Column3 Column4 Column5 Column6 Column7 Balance Sheet December 31 1999 1998 increase or decrease percentage change ASSETS Cash and marketable securities $ 30,000 $ 25,000 5000 20 Accounts receivable 110,000 90,000 20000 22.2222222 Inventories 100,000 80,000 20000 25 Total current assets 240,000 195,000 45000 23.0769231 Gross plant and equipment 250,000 220,000 30000 13.6363636 Less accumulated appreciation -100,000 -65,000 -35000 53.8461538 Net plant and equipment 150,000 155,000 -5000 -3.2258065 Land 50,000 50,000 0 0 Total fixed assets 200,000 205,000 -5000 -2.4390244 Total assets $ 440,000 $ 400.000 40000 10 LIABILTIES AND EQUITY Accounts payable $ 58,000 $ 50,000 8000 16 Notes payable 50,000 50,000 0 0 Accrued liabilities 0 0 0 0 Total current liabilities 108,000 100,000 8000 8 Long-term debt 32,000 20,000 12000 60 Total liabilities 140,000 120,000 20000 16.6666667 Total stockholders' equity 300,000 280,000 120000 42.8571429 Total liabilities and equity $ 440,000 $ 400,000 40000 10 Income Statement Year Ended Dec. 31 1999 1998 Net revenues or sales $1,100,000 $1,000,000 100000 10 Cost of goods sold 700,000 650,000 50000 7.69230769 Gross profit 400,000 350,000 50000 14.2857143 Operating Expenses: General and administrative 143,000 135,000 8000 5.92592593 Selling and marketing 88,000 80,000 8000 10 Depreciation 44,000 40,000 4000 10 Operating Income 125,000 95,000 30000 31.5789474 Interest 15,000 15,000 0 0 Income before taxes 110,000 80,000 30000 37.5 Income taxes (40%) 44,000 32,000 12000 37.5 Net income $ 66,000 43,000 23000 53.4883721Related Questions
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