Question

Complete a horizontal analysis for Brown Company. (Negative answers should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round the "percent" answers to the nearest hundredth percent.)

BROWN COMPANY Comparative Balance Sheet December 31, 2014 and 2015
					INCREASE (DECREASE)
	2015		2014		Amount	Percent
Assets
Current assets:
Cash	$	15,750	$	10,500	$
Accounts receivable		18,000		13,500
Merchandise inventory		18,750		22,500
Prepaid advertising		54,000		45,000
Total current assets	$	106,500	$	91,500	$
Plant and equipment:
Building (net)		120,000		126,000	$
Land		90,000		90,000
Total plant and equipment	$	210,000	$	216,000
Total assets	$	316,500	$	307,500	$
Liabilities
Current liabilities:
Accounts payable	$	132,000	$	120,000	$
Salaries payable		22,500		18,000
Total current liabilities	$	154,500	$	138,000	$
Long-term liabilities:
Mortgage note payable		99,000		87,000
Total liabilities	$	253,500	$	225,000	$
Owner’s Equity
J. Brown, capital		63,000		82,500
Total liabilities and owner’s equity	$	316,500	$	307,500	$

Answer 1

December 31, 2014 and 2015
					INCREASE (DECREASE)
	2015		2014		Amount	Percent
Assets					(2015 value -2014 value)	(Amount/value of 2014)*100
Current assets:
Cash	$	15750.00	$	10500.00	5250	50.00%
Accounts receivable		18000.00		13500.00	4500	33.33%
Merchandise inventory		18750.00		22500.00	-3750	-16.67%
Prepaid advertising		54000.00		45000.00	9000	20.00%
					0
Total current assets	$	106500.00	$	91500.00	15000	16.39%
					0
Plant and equipment:					0
Building (net)		120000.00		126000.00	-6000	-4.76%
Land		90000.00		90000.00	0	0.00%
					0
Total plant and equipment	$	210000.00	$	216000.00	-6000	-2.78%
					0
Total assets	$	316500.00	$	307500.00	9000	2.93%
					0
Liabilities					0
Current liabilities:					0
Accounts payable	$	132000.00	$	120000.00	12000	10.00%
Salaries payable		22500.00		18000.00	4500	25.00%
					0
Total current liabilities	$	154500.00	$	138000.00	16500	11.96%
Long-term liabilities:					0
Mortgage note payable		99000.00		87000.00	12000	13.79%
					0
Total liabilities	$	253500.00	$	225000.00	28500	12.67%
Owner’s Equity					0
J. Brown, capital		63000.00		82500.00	-19500	-23.64%
					0
Total liabilities and owner’s equity	$	316500.00	$	307500.00	9000	2.93%
					0