Question

Using these data from the comparative balance sheet of Ramirez Company, perform horizontal analysis.

Dec. 31, 2014 Dec. 31, 2013 Amount Percentage

Accounts receivable $535,000 $450,000 _______ _________
Inventory $792,000 $606,000 _______ _______
Total assets $3,138,000 $2,707,000 _______ _______

Answer 1

Ramirez Company comparative balance sheet

2014 2013

Particulars Amount Percent Amount Percent

Accounts receivable 535,000 17.05% 450,000 16.62%

Inventory 792,000 25.24% 606,000 22.39%

Other Assets 1,811,000 57.71% 1,651,000 60.99%

Total assets 3,138,000 100% 2,707,000 100%

2014 Workings

Account receivables= 535,000 / 3,138,000 * 100 = 17.05%

Inventory= 792,000 / 3,138,000 * 100 =25.24%

Other Assets= 1,811,000 / 3,138,000 * 100 = 57.71%

2013 Workings

Account receivables= 450,000/2,707,000 * 100= 16.62%

Inventory=606,000/2,707,000 * 100= 22.39%

Other Assets=1,651,000/2,707,000 * 100= 60.99%