Question

Determine the missing 2022 change percentages for (a) Intangible assets and (b) Total assets in the horizontal analysis for Mort Company

Answer 1

The information that the question is referring to is this:

Assets 2017 2016 Amount Percent

Current Assets $900,000 $800,000 $100,000 12.50%

Plant Assets $475,000 $550,000 ($75,000) (13.6%)

Intangible Assets $300,000 $225,000 $75,000

Total Assets $1,675,000 $1,575,000 $100,000

Step-by-step explanation:

Change in intangible assets

75,000 x 100 / 225,000 = 33.3%

Change in total assets

100,000 x 100 / 1,575,000 = 6.3%