Question - Horizontal and Vertical Analysis
Presented below are comparative balance sheets for the Gilmour Company.
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GILMOUR COMPANY Comparative Balance Sheet As of December 31, 2011 and 2010
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December 31
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2011
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2010
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Assets
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Cash
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$180,000
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$275,000
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Accounts receivable (net)
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220,000
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155,000
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Short-term investments
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270,000
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150,000
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Inventories
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1,060,000
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980,000
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Prepaid expense
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25,000
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25,000
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Fixed assets
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2,585,000
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1,950,000
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Accumulated depreciation
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(1,000,000)
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(750,000)
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$3,340,000
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$2,785,000
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Liabilities and Stockholders' Equity
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Accounts payable
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$50,000
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$75,000
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Accrued expenses
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170,000
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200,000
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Bonds payable
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450,000
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190,000
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Capital stock
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2,100,000
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1,770,000
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Retained earnings
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570,000
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550,000
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$3,340,000
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$2,785,000
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Instructions - Complete the comparative balance sheet of Gilmour Company showing the dollar change and the percent change for each item.