Question

The comparative balance sheet of Nathan Company appears below: NATHAN COMPANY Comparative Balance Sheet December 31, Assets 2017 2016 Current assets $420 $333 Plant assets 780 567 Total assets $1,200 $900 Liabilities and stockholders' equity Current liabilities $168 $144 Long-term debt 300 162 Common stock 432 306 Retained earnings 300 288 Total liabilities and stockholders' equity $1,200 $900 Using horizontal analysis, show the percentage change for each balance sheet item using 2016 as a base year. NATHAN COMPANY Comparative Balance Sheet December 31, Assets 2017 2016 Percentage change Current assets $420 $333 % Plant assets 780 567 % Total assets $1,200 $900 % Liabilities and stockholders' equity Current liabilities $168 $144 % Long-term debt 300 162 % Common stock 432 306 % Retained earnings 300 288 % Total liabilities and stockholders' equity $1,200 $900 % Using vertical analysis, prepare a common size comparative balance sheet. (Round percentages to 0 decimal places, e.g. 12.) NATHAN COMPANY Comparative Balance Sheet December 31 2017 2016 Assets Amount Percentage Amount Percentage Current assets $420 % $333 % Plant assets 780 % 567 % Total assets $1,200 % $900 % Liabilities and stockholders' equity Current liabilities $168 % $144 % Long-term debt 300 % 162 % Common stock 432 % 306 % Retained earnings 300 % 288 % Total liabilities and stockholders' equity $1,200 % $900 %

Answer 1

NATHAN COMPANY

Comparative Balance Sheet

For the years 2017 and 2016

2017 2018 Change Change

value in %

Assets:

Current assets $420 $333 $87 26.13%

Plant assets $780 $567 $213 37.57%

Total assets $1,200 $900 $300 33.33%

Liabilities and stockholders' equity

Current liabilities $168 $144 $24 16.67%

Long-term debt $300 $162 $138 85.19%

Common stock $432 $306 $126 41.18%

Retained earnings $300 $288 $12 4.17%

Total liabilities and equity $1,200 $900 $300 33.33%