Homework SourseSuppose the comparative balance sheets of Splish Brothers In
Suppose the comparative balance sheets of Splish Brothers Inc. are presented here. SPLISH BROTHERS INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,580 $8,770 Property, plant, and equipment (net) 1,810 1,800 Other assets 1,540 1,670 Total assets $12,930 $12,240 Liabilities and Stockholders\' Equity Current Liabilities $3,150 $3,320 Long-term liabilities 1,320 1,370 Stockholders’ equity 8,460 7,550 Total liabilities and stockholders\' equity $12,930 $12,240 (a) Prepare a horizontal analysis of the balance sheet data for Splish Brothers, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)
Solution
Comparative Balance Sheet
May 31, 2017 and 2016
Increase or (Decrease)
Amount
Increase or (Decrease)
Percent
* 9580 - 8770 = 810
(810/8770) * 100 = 9.2%
| Particulars | 2017($) | 2016($) | Increase or (Decrease) Amount | Increase or (Decrease) Percent |
| Assets | ||||
| Current Assets | 9580 | 8770 | 810* | 9.2% |
| Property, Plant & Equipment | 1810 | 1800 | 10 | 0.6% |
| Other Assets | 1540 | 1670 | (130) | (7.8)% |
| Total Assets | 12930 | 12240 | 690 | 5.6% |
| Liabilities & Stockholder\'s Equity | ||||
| Current Liabilities | 3150 | 3320 | (170) | (5.1)% |
| Long Term Liabilities | 1320 | 1370 | (50) | (3.6)% |
| Stockholder\'s Equity | 8460 | 7550 | 910 | 12.0% |
| Total Liabilities & Stockholder\'s Equity | 12930 | 12240 | 690 | 5.6% |
