2 Prepare a horizontal analysis of Sports Unlimiteds 2018 ba

2. Prepare a horizontal analysis of Sports Unlimited\'s 2018 balance sheet using 2017 as the base year. (Negative amounts and Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) SPORTS UNLIMITED Balance Sheets Year Increase (Decrease) Amount 2018 2017 Current assets: $211,500 140,800 50,400 154,400 14,400 Cash 99,900 82,800 28,800 Accounts receivable Prepaid rent Long-term assets: Investment in bonds 108,900 238,500 206,100 (76,500) $ 900,000$ 800,000 280,000 202,400 (42,400) Equipment Less: Accumulated depreciation Total a ssets Liabilities and Stockholders\' Equity Current liabilities Accounts payable Interest payable Income tax payable $ 75,600 88,800 14,400 16,000 28,800 21,600 Long-term liabilit Notes payable 243,900 234,400 Stockholders\' equity 288,000 242,100 $ 900,000 288,000 158,400 800,000 Common stock Retained earnings Total liabilities and stockholders\' equity

Solution

Horizontal Analysis of Balance Sheet

December 31, 2018 and 2017

(All Amounts in $ )

Amount

Increase / (Decrease)

%

Increase / (Decrease)

Long Term Assets

Liabilities and Stockholders\' Equity

Long Term Liabilities

# 211500 - 140800 = 70700

(70700 / 140800 ) * 100 = 50.2%

Assets	2018	2017	Amount Increase / (Decrease)	% Increase / (Decrease)
Current Assets
Cash	211500	140800	70700 #	50.2% #
Accounts Receivable	99900	50400	49500	98.2%
Inventory	82800	154400	(71600)	(46.4)%
Prepaid Rent	28800	14400	14400	100%
Long Term Assets
Investment in bonds	108900	0	108900	Not Applicable
Land	238500	280000	(41500)	(14.8)%
Equipment	206100	202400	3700	1.8%
Less: Accumulated Depreciation	(76500)	(42400)	34100	80.4%
Total Assets	900000	800000	100000	12.5%
Liabilities and Stockholders\' Equity
Current Liabilities
Accounts Payable	75600	88800	(13200)	(14.9)%
Interest Payable	28800	14400	14400	100%
Income Tax Payable	21600	16000	5600	35%
Long Term Liabilities
Notes Payable	243900	234400	9500	4.1%
Stockholders\' Equity
Common Stock	288000	288000	0	0
Retained Earnings	242100	158400	83700	52.8%
Total Liabilities and Stockholders\' Equity	900000	800000	100000	12.5%