Question

In: Accounting

Please create a vertical and horizontal analysis of the following balance sheet. 2009 2010 Assets Current...

Please create a vertical and horizontal analysis of the following balance sheet.

2009 2010
Assets
Current Asset
Cash 3278 1844
Accounts Receivable 6954 11807
Inventory 17417 9628
Fixed Asset
Plant & Equipment 144500 158700
Total Assets 172149 181979
Liabilities
Current Liabilities
Accounts Payables 9250 13446
Wages Payable 1110 650
Property & Tax Payables 3650 4124
Non-Current Liabilities
Long-Term Debt 75800 92800
Owners' Equity 82339 70959
Total Liabilities 172149 181979

Solutions

Expert Solution

Solution :

Horizental Analysis - Balance Sheet
Particulars 2010 2009 Increase (Decrease) % change from 2009
Assets:
Current Assets:
Cash $1,844.00 $3,278.00 -$1,434.00 -43.75%
Accounts receivables $11,807.00 $6,954.00 $4,853.00 69.79%
Inventory $9,628.00 $17,417.00 -$7,789.00 -44.72%
Fixed Assets:
Plant & Equipment $158,700.00 $144,500.00 $14,200.00 9.83%
Total Assets $181,979.00 $172,149.00 $9,830.00 5.71%
Liabilities:
Current liabilities:
Accounts Payable $13,446.00 $9,250.00 $4,196.00 45.36%
Wages Payable $650.00 $1,110.00 -$460.00 -41.44%
Property and tax payables $4,124.00 $3,650.00 $474.00 12.99%
Non Current Liabilities:
Long term debt $92,800.00 $75,800.00 $17,000.00 22.43%
Owner's Equity $70,959.00 $82,339.00 -$11,380.00 -13.82%
Total Liabilities $181,979.00 $172,149.00 $9,830.00 5.71%
Vertical Analysis - Balance Sheet
Particulars 2010 Percent - 2010 2009 Percentage - 2009
Assets:
Current Assets:
Cash $1,844.00 1.01% $3,278.00 1.90%
Accounts receivables $11,807.00 6.49% $6,954.00 4.04%
Inventory $9,628.00 5.29% $17,417.00 10.12%
Fixed Assets: 0.00%
Plant & Equipment $158,700.00 87.21% $144,500.00 83.94%
Total Assets $181,979.00 100.00% $172,149.00 100.00%
Liabilities:
Current liabilities:
Accounts Payable $13,446.00 7.39% $9,250.00 5.37%
Wages Payable $650.00 0.36% $1,110.00 0.64%
Property and tax payables $4,124.00 2.27% $3,650.00 2.12%
Non Current Liabilities:
Long term debt $92,800.00 50.99% $75,800.00 44.03%
Owner's Equity $70,959.00 38.99% $82,339.00 47.83%
Total Liabilities $181,979.00 100.00% $172,149.00 100.00%

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