Homework SourseExercise 143 The comparative condensed balance sheets of Gur
Exercise 14-3
The comparative condensed balance sheets of Gurley Corporation are presented below.
GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31
2017
2016
(a)
Prepare a horizontal analysis of the balance sheet data for Gurley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
2017
2016
Increase
(Decrease)
Percentage
Change from 2016
Assets
Current assets
$ 73,500
$ 78,400
Property, plant & equipment (net)
98,400
91,600
Intangibles
Total assets
Liabilities and stockholders\' Equity
Current liabilities
$ 40,800
$ 49,800
Long-term liabilities
144,800
149,200
Stockholders\' equity
Total liabilities and stockholders\' equity
(b)
Prepare a vertical analysis of the balance sheet data for Gurley Corporation in columnar form for 2017. (Round percentages to 1 decimal place, e.g. 12.3%.)
Amount
Percent
Assets
Current assets
$ 73,500
Property, plant, and equipment (net)
98,400
Intangibles
Total assets
Liabilities and stockholders\' equity
Current liabilities
$ 40,800
Long-term liabilities
144,800
Stockholders\' equity
Total liabilities and stockholders\' equity
| GURLEY CORPORATION | ||||
| 2017 | 2016 | |||
| Assets | ||||
| Current assets | $ 73,500 | $ 78,400 | ||
| Property, plant, and equipment (net) | 98,400 | 91,600 | ||
| Intangibles | 28,400 | 41,400 | ||
| Total assets | $ 200,300 | $ 211,400 | ||
| Liabilities and stockholders’ equity | ||||
| Current liabilities | $ 40,800 | $ 49,800 | ||
| Long-term liabilities | 144,800 | 149,200 | ||
| Stockholders’ equity | 14,700 | 12,400 | ||
| Total liabilities and stockholders’ equity | $ 200,300 | $ 211,400 |
Solution
Answer a)-
b)-
| GURLEY CORPORATION | ||||
| Horizontal Analysis | ||||
| Particulars | 2017 | 2016 | Change | Change |
| $ | $ | $ | % | |
| Assets:- | ||||
| Current Assets | 73500 | 78400 | -4900 | -6.3 |
| Property, plant & equipment (net) | 98400 | 91600 | 6800 | 7.4 |
| Intangibles | 28400 | 41400 | -13000 | -31.4 |
| Total assets | 200300 | 211400 | -11100 | -5.3 |
| Liabilities and stockholders\' Equity:- | ||||
| Current liabilities | 40800 | 49800 | -9000 | -18.1 |
| Long-term liabilities | 144800 | 149200 | -4400 | -2.9 |
| Stockholders\' equity | 14700 | 12400 | 2300 | 18.5 |
| Total liabilities and stockholders\' equity | 200300 | 211400 | -11100 | -5.3 |
