Question

Here is financial information for Shamrock, Inc.

December 31, 2017 December 31, 2016.
Current assets $108,000 $ 92,500
Plant assets (net) 402,500 352,000
Current liabilities 101,500 67,000
Long-term liabilities 124,000 92,500
Common stock, $1 par 132,000 117,000
Retained earnings 153,000 168,000
Required:
a. Prepare a schedule showing a horizontal analysis for 2017, using 2016 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

2017 Total $510,500

2016 Total $444,500

Difference $66,000

Percent Change 14.85%

Step-by-step explanation:

Shamrock, Inc.

December 31, 2017

SCHEDULE OF HORIZONTAL ANALYSIS

ITEM(a) 2017(b) 2016(c) AMOUNT(d=b-c) %CHANGE(e=d/c*100)

ASSETS

Current Assets $108,000 $92,500 $15,500 16.76%

Plant Assets (net) $402,500 $352,000 $50,500 14.35%

Total Assets $510,500 $444,500 $66,000 14.85%

LIABILITIES

Current Liabilities $101,500 $67,000 $34,500 51.49%

Long-term Liabilities $124,000 $92,500 $31,500 34.05%

STOCKHOLDERS' EQUITY

Common stock, $1 par $132,000 $117,000 $15,000 12.82%

Retained earnings $153,000 $168,000 -$15,000 -8.93%

TOTAL LIABILITIES & EQUITY $510,500 $444,500 $66,000 14.85%