Presented below is a balance sheet for the last two years:
2016 2015
Cash $118,000 $115,000
Accounts receivable $98,000 $ 77,000
Short-term investments $60,000 $65,000
Current assets $276,000 $257,000
Equipment, net of depreciation $220,000 $205,000
Land $75,000 $75,000
Total assets $571,000 $537,000
Accounts payable $72,000 $96,000
Wages payable $4,000 $3,000
Short-term revolving bank loan $85,000 $50,000
Current liabilities $161,000 $149,000
Long-term debt $128,000 $132,000
Total liabilities $289,000 $281,000
Common stock $100,000 $100,000
Prepare a horizontal analysis. Display percentages to 3 decimal places (.654 = 65.4%). Discuss any line items from the balance sheet that may warrant further investigation from management.
Which items should be looked at further?