Question

Summary financial information for Paragon Company is as follows. Dec. 31, 2014 Dec. 31, 2013 Current assets $ 203,600 $ 254,000 Plant assets 1,397,000 831,700 Total assets $1,600,600 $1,085,700 Compute the amount and percentage changes in 2014 using horizontal analysis, assuming 2013 is the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 0 decimal places, e.g. 12%.) Amount Percent Current assets $ % Plant assets % Total assets $ %

Answer 1

Current assets:

Amount = 2014 value - 2013 value

= $203,600 - $254,000

= -($50,400) (Negative)

percentage changes =
`(Amount)/(2013\ value)*100`

=
`(50,400)/(254,000)*100`

= (19.84)%

Plant assets:

Amount = 2014 value - 2013 value

= $1,397,000 - $831,700

= $565,300

percentage changes =
`(Amount)/(2013\ value)*100`

=
`(565,300)/(831,700)*100`

= 67.96%

Total assets:

Amount = 2014 value - 2013 value

= $1,600,600 - $1,085,700

= $514,900

percentage changes =
`(Amount)/(2013\ value)*100`

=
`(514,900)/(1,085,700)*100`

= 47.42%