Question

Using these data from the comparative balance sheet of Sunta Fe Spice Company, perform horizontal analysis. (Round percentages to 0 decimal place, e.g. 17%.)

Increase or (Decrease)
December 31, 2017 December 31, 2016 Increase or (Decrease) Amount Percentage
Accounts receivable $ 375,000 $ 300,000 $ __________ ___________ %
Inventory 780,000 600,000 ____________ ___________ %
Total assets 3,220,000 2,800,000 __________ __________ %

Answer 1

• 25%
• 30%

• 15%

Step-by-step explanation:

Accounts receivables

December 31 2017 = $375000

December 31 2016 = $300000

difference = $75000 ( 25%) { increase}

Inventory

December 31 2017 = 780000

December 31 2016 = 600000

difference = 180000 ( 30% ) { increase}

Total assets

December 31 2017 = 3220000

December 31 2016 = 2800000

difference = 420000 ( 15% ) { increase }

Answer 2

75000,25%;

18000, 30%.

420000, 15%.

Step-by-step explanation:

From the question above we are given the following parameters Accounts receivable for year 2017 = $ 375,000,

Inventory for the year 2017 = 780,000 and the Total assets for the year 2017 = 3,220,000.

Accounts receivable for year 2016 = $ 300,000, inventory for the year 2016 = 600,000 and the Total assets for the year 2016 = 2,800,000.

Therefore, we have the following simple arithmetic(which is subtraction between the variables in the two years) to determine the solution to the question:

(375,000 - 300,000) = 75,000 = 25%(increase).

(780,000 - 600,000) = 180,000 = 30%(Increase).

(3,220,000 - 2,800,00) = 420,000 = 15%(increase).