Problem: The company balance sheets of Ramsey Corp. are presented below.
Ramsey Corp. Comparative Balance Sheets
December 31 2007 2006
Assets $ $
-current assets 76,000 80,000
Property,plant,and 99,000 90,000
equipment(net)
Intangibles 25,000 40,000
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-Total assess $200,000 $210,000
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Liabilities and stock- $ $
holders equity
-current liabilities 40,800 48,000
long term liabilities 143,000 150,000
stockholders equity 16,200 12,000
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-Total liabilities & $200,000 $210,000
stockholders equity
Instructions:
Q1. Prepare a horizontal analysis of the balance sheet data for Ramsey corp. using 2006 as a base.
Q2. Prepare a vertical analysis of the balance sheet data for Ramsey corp. in columnare form for 2007.