Question

Please answer questions 1-3 and fill out both charts columns ( Different and % Change) as well as the (percentage). I can't award credit if all questions and charts are not completed.

Balance sheet data for Silver Corporation are presented here. Using Comparative Analysis
SILVERT CORPORATION
Balance Sheet
December 31
			Different	% Change
	2012	2011
ASSET
Cash	$                28,000	$             20,000
Receivable (net)	70,000	62,000
Other current assets	90,000	73,000
Long-term investment	62,000	60,000
Plant and equipment (net)	510,000	470,000
Total Assets	$          760,000	$        685,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$                75,000	$             70,000
Long-term debt	80,000	90,000
Common stock	330,000	300,000
Retained earnings	275,000	225,000
	760,000	685,000

Income Statement Date for Paul’s Guitar Shop Inc. Using Common Size
Revenue		Percentage
Merchandise sales	$24,800
Other Income	3,000
Total Revenues	$27,800
Expenses
Office supplies	10,200
Depreciation expenses	2,000
Wage expense	750
Rent expense	500
Interest expense	500
Supplies expense	500
Utilities	400
Total Expenses	14,850
Net Profit	$12,950

INSTRUCTIONS:

1] Use the balance sheet and apply the comparative analysis to determine the difference and % change.

2] Use the income statement and apply the common size to determine the % change.

3] Please provide the interpretation on both statements analysis.

Answer 1

1)	SILVERT CORPORATION
	Balance Sheet
	31-Dec
				Difference	% Change
		2012	2011
	ASSET
	Cash	28000	20000	8000	40.00%
	Receivable (net)	70000	62000	8000	12.90%
	Other current assets	90000	73000	17000	23.29%
	Long-term investment	62000	60000	2000	3.33%
	Plant and equipment (net)	510000	470000	40000	8.51%
	Total Assets	760000	685000	75000	10.95%
	LIABILITIES AND STOCKHOLDERS' EQUITY
	Current liabilities	75000	70000	5000	7.14%
	Long-term debt	80,000	90,000	-10000	-11.11%
	Common stock	330,000	300,000	30000	10.00%
	Retained earnings	275,000	225,000	50000	22.22%
	Total liabilities and stockholders' equity	760,000	685,000	75000	10.95%
2)	Income Statement Date for Paul’s Guitar Shop Inc.
	Using Common Size
	Revenue		Percentage
	Merchandise sales	24800	89.21%
	Other Income	3,000	10.79%
	Total Revenues	27800	100.00%
	Expenses
	Office supplies	10200	36.69%
	Depreciation expenses	2,000	7.19%
	Wage expense	750	2.70%
	Rent expense	500	1.80%
	Interest expense	500	1.80%
	Supplies expense	500	1.80%
	Utilities	400	1.44%
	Total Expenses	14,850	53.42%
	Net Profit	12950	46.58%
3)	SILVERT CORPORATION:
	The total assets has increased by 10%
	The increase is mainly in current assets.
	The total current assets has increased by 21.2% [(188000-155000)/155000]
	LT debt has been repaid to the extent of 10%.
	The required funds for the increase in assets and payment of long term
	debt has mainly come from common equity and net income.
	PAUL'S GUITAR SHOP:
	Out of the revenues, merchandise sales constitutes 89.21%.
	The major expense is office supplies which accounts for 36.69%
	of total revenues; depreciation is 7.19% and wages is 2.7%.
	other expenses are trivial.
	The total expense is 53.42% of revenue and the Net Profit 46.58%
	of revenue.