In: Accounting
Exercise 18-3
The comparative condensed balance sheets of Gurley Corporation are presented below.
GURLEY CORPORATION |
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2017 |
2016 |
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Assets | ||||
Current assets | $ 73,800 | $ 79,400 | ||
Property, plant, and equipment (net) | 97,100 | 91,200 | ||
Intangibles | 27,400 | 40,200 | ||
Total assets | $198,300 | $210,800 | ||
Liabilities and stockholders’ equity | ||||
Current liabilities | $ 40,400 | $ 49,200 | ||
Long-term liabilities | 143,200 | 148,000 | ||
Stockholders’ equity | 14,700 | 13,600 | ||
Total liabilities and stockholders’ equity | $198,300 | $210,800 |
(a)
Prepare a horizontal analysis of the balance sheet data for Gurley
Corporation using 2016 as a base
GURLEY CORPORATION | ||||
Balance Sheet | ||||
December 31 | ||||
2017 |
2016 |
Increase (Decrease) |
Percentage change Base year 2016 |
|
Assets | ||||
Current assets | $73800 | $79400 | (73800-79400)= -5600 | (-5600*100/79400)= -7.05% |
Property, plant, and equipment (net) | 97100 | 91200 | (97100-91200)= 5900 | (5900*100/91200)= 6.47% |
Intangibles | 27400 | 40200 | (27400-40200)= -12800 | (-12800*100/40200)= -31.84% |
Total assets | $198300 | $210800 | (198300-210800)= -12500 | (-12500*100/210800)= -5.93% |
Liabilities and stockholders’ equity | ||||
Current liabilities | $40400 | $49200 | (40400-49200)= -8800 | (-8800*100/49200)= -17.89% |
Long-term liabilities | 143200 | 148000 | (143200-148000)= -4800 | (-4800*100/148000)= -3.24% |
Stockholders’ equity | 14700 | 13600 | (14700-13600)= 1100 | (1100*100/13600)= 8.09% |
Total liabilities and stockholders’ equity | $198300 | $210800 | (198300-210800)= -12500 | (-12500*100/210800)= -5.93% |