Question

Here is financial information for Larkspur, Inc. December 31, 2022 December 31, 2021 Current assets $108,600 $ 94,500 Plant assets (net) 404,500 352,600 Current liabilities 103,500 67,600 Long-term liabilities 124,600 94,500 Common stock, $1 par 132,600 117,600 Retained earnings 152,400 167,400 Prepare a schedule showing a horizontal analysis for 2022, using 2021 as 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 1 decimal place, e.g. 12.1%.)

Answer 1

2022 2021 Amount Percentage

[A] [B] [C = A – B] [D = C/B]

ASSETS

Current Assets $108,600 $94,500 $14,100 14.9%

Plant Assets (net) $404,500 $352,600 $51,900 14.7%

Total Assets $513,100 $447,100 $66,000 14.8%

LIABILITIES

Current Liabilities $103,500 $67,600 $35,900 53.1%

Long Term Liabilities $124,600 $94,500 $30,100 31.9%

Total Liabilities $228,100 $162,100 $66,000 40.7%

STOCKHOLDER's EQUITY

Common Stock $1 par $132,600 $117,600 $15,000 12.8%

Retained Earnings $152,400 $167,400 $(15,000) -9.0%

Total S.H. 's Equity $285,000 $285,000 - $0.0%

Total Liabilities & $513,100 $447,100 $66,000 14.8%

Stockholder's Equity