Q1) Given below is a comparative balance sheet for Bogues Corporation for 20X7 and 20X6. Make a horizontal analysis of Bogues Corporation's balance sheet.
Bogues Corporation
Comparative Balance Sheet
December 31, 20X7 and 20X6 |
| |
20X7 |
20X6 |
| Assets |
| Current assets |
| Cash |
$ 31,000 |
$ 20,000 |
| Accounts receivable (net) |
35,000 |
25,000 |
| Merchandise inventory |
45,000 |
40,000 |
| Prepaid expenses |
20,000 |
5,000 |
| Total current assets |
131,000 |
90,000 |
| Plant assets |
| Land |
$ 40,000 |
$ 50,000 |
| Equipment (net) |
100,000 |
90,000 |
| Total assets |
$271,000 |
$230,000 |
| Liabilities |
| Current liabilities |
| Accounts payable |
$ 40,000 |
$ 35,000 |
| Salary payable |
15,000 |
10,000 |
| Total current liabilities |
55,000 |
45,000 |
| Stockholders' equity |
| Common stock |
116,000 |
100,000 |
| Retained earnings |
100,000 |
85,000 |
| Total stockholders' equity |
216,000 |
185,000 |
| Total liabilities & stockholders' equity |
$271,000 |
$230,000 |