Question

Carolina Products
Balance Sheet
12/31/2016 & 12/31/2015
			Horizontal Analysis
Assets	2016	2015	$ Change	% Change
Cash	$108,886	$107,455
Accounts Receivable	$105,650	$112,420
Prepaid Insurance	$1,100	$1,000
Inventory	$205,000	$189,350
Prepaid Expenses	$1,200	$1,050
Land	$80,000	$80,000
Office Equipment	$10,500	$10,500
Accum Depr-Office Equip	($2,000)	($2,200)
Total Assets	$510,336	$501,590
Liabilities
Accounts Payable	$72,090	$70,005
Sales Tax Payable	$3,500	$3,450
Interest Payable	$860	$825
Total Liabilities	$76,450	$74,280
Stockholders Equity
Common Stock	$60,000	$58,000
Paid in Capital in Excess of Par	$260,000	$254,500
Retained Earnings	$113,886	$114,810
Total Stockholders Equity	$433,886	$427,310
Total Liabilities & Stockholders Equity	$510,336	$501,590

Answer 1

Solution

Carolina Products
Balance Sheet
12/31/2016 & 12/31/2015
			Horizontal Analysis
Assets	2016	2015	$ Change	% Change
Cash	$108,886.00	$107,455.00	$ 1,431.00	1.3%
Accounts Receivable	$105,650.00	$112,420.00	$ (6,770.00)	-6.0%
Prepaid Insurance	$    1,100.00	$    1,000.00	$     100.00	10.0%
Inventory	$205,000.00	$189,350.00	$15,650.00	8.3%
Prepaid Expenses	$    1,200.00	$    1,050.00	$     150.00	14.3%
Land	$ 80,000.00	$ 80,000.00	$           -	0.0%
Office Equipment	$ 10,500.00	$ 10,500.00	$           -	0.0%
Accum Depr-Office Equip	$   (2,000.00)	$   (2,200.00)	$     200.00	-9.1%
Total Assets	$510,336.00	$501,590.00	$ 8,746.00	1.7%
Liabilities
Accounts Payable	$ 72,090.00	$ 70,005.00	$ 2,085.00	3.0%
Sales Tax Payable	$    3,500.00	$    3,450.00	$      50.00	1.4%
Interest Payable	$       860.00	$       825.00	$      35.00	4.2%
Total Liabilities	$ 76,450.00	$ 74,280.00	$ 2,170.00	2.9%
Stockholders Equity
Common Stock	$ 60,000.00	$ 58,000.00	$ 2,000.00	3.4%
Paid in Capital in Excess of Par	$260,000.00	$254,500.00	$ 5,500.00	2.2%
Retained Earnings	$113,886.00	$114,810.00	$    (924.00)	-0.8%
Total Stockholders Equity	$433,886.00	$427,310.00	$ 6,576.00	1.5%
Total Liabilities & Stockholders Equity	$510,336.00	$501,590.00	$ 8,746.00	1.7%

Alternate answer with % in 2 decimal place

Carolina Products
Balance Sheet
12/31/2016 & 12/31/2015
			Horizontal Analysis
Assets	2016	2015	$ Change	% Change
Cash	$108,886.00	$107,455.00	$ 1,431.00	1.33%
Accounts Receivable	$105,650.00	$112,420.00	$ (6,770.00)	-6.02%
Prepaid Insurance	$    1,100.00	$    1,000.00	$     100.00	10.00%
Inventory	$205,000.00	$189,350.00	$15,650.00	8.27%
Prepaid Expenses	$    1,200.00	$    1,050.00	$     150.00	14.29%
Land	$ 80,000.00	$ 80,000.00	$           -	0.00%
Office Equipment	$ 10,500.00	$ 10,500.00	$           -	0.00%
Accum Depr-Office Equip	$   (2,000.00)	$   (2,200.00)	$     200.00	-9.09%
Total Assets	$510,336.00	$501,590.00	$ 8,746.00	1.74%
Liabilities
Accounts Payable	$ 72,090.00	$ 70,005.00	$ 2,085.00	2.98%
Sales Tax Payable	$    3,500.00	$    3,450.00	$      50.00	1.45%
Interest Payable	$       860.00	$       825.00	$      35.00	4.24%
Total Liabilities	$ 76,450.00	$ 74,280.00	$ 2,170.00	2.92%
Stockholders Equity
Common Stock	$ 60,000.00	$ 58,000.00	$ 2,000.00	3.45%
Paid in Capital in Excess of Par	$260,000.00	$254,500.00	$ 5,500.00	2.16%
Retained Earnings	$113,886.00	$114,810.00	$    (924.00)	-0.80%
Total Stockholders Equity	$433,886.00	$427,310.00	$ 6,576.00	1.54%
Total Liabilities & Stockholders Equity	$510,336.00	$501,590.00	$ 8,746.00	1.74%