Question

Prepare a horizontal analysis of both the balance sheet and income statement.

Prepare a horizontal analysis of the balance sheet. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).)

BAIRD COMPANY Horizontal Analysis of Balance Sheets 2019 2018 Percentage Change Assets Current assets Cash $17,600 $12,200 % Marketable securities 21,000 6,200 Accounts receivable (net) 54,700 46,800 Inventories 136,500 143,300 Prepaid items 26,500 11,800 Total current assets 256,300 220,300 Investments 27,100 21,100 Plant (net) 271,300 256,400 Land 30,200 24,900 Total long-term assets 328,600 302,400 Total assets $584,900 $522,700 Liabilities and Stockholders’ Equity Liabilities Current liabilities Notes payable $16,700 $4,200 Accounts payable 113,300 99,600 Salaries payable 19,300 14,200 Total current liabilities 149,300 118,000 Noncurrent liabilities Bonds payable 98,300 98,300 Other 30,200 25,700 Total noncurrent liabilities 128,500 124,000 Total liabilities 277,800 242,000 Stockholders' equity Preferred stock (par value $10, 4% cumulative, nonparticipating; 6,800 shares authorized and issued) 68,000 68,000 Common stock (no par; 50,000 shares authorized; 10,000 shares issued) 68,000 68,000 Retained earnings 171,100 144,700 Total stockholders' equity 307,100 280,700 Total liabilities & stockholders’ equity $584,900 $522,700 %

Part 2

Prepare a horizontal analysis of the income statement. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).)

BAIRD COMPANY Horizontal Analysis of Income Statements 2019 2018 Percentage Change Revenues Sales (net) $230,200 $211,100 % Other revenues 9,700 5,200 Total revenues 239,900 216,300 Expenses Cost of goods sold 119,900 101,300 Selling, general, and administrative expenses 53,300 48,400 Interest expense 7,100 6,300 Income tax expense 21,600 20,600 Total expenses 201,900 176,600 Net income (loss) $38,000 $39,700 %

Answer 1

Horizontal analysis of the balance sheet and income statement is shown as follows:

Horizontal analysis of balance sheet is done is excel as follows:

The above excel after computation is shown below:

Horizontal analysis of income statement is done is excel as follows:

The result of above excel is shown below: