The comparative balance sheets of Ramsey Egyptian Buffet are presented below.
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RAMSEY EGYPTIAN BUFFET
Comparative Balance Sheets
December 31
|
| |
2009
|
2008
|
|
Assets
|
|
|
|
Current assets
|
76,000
|
80,000
|
|
Property, plant, and equipment (net)
|
99,000
|
90,000
|
|
Intangibles
|
$25,000
|
$40,000
|
|
Total assets
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$200,000
|
$210,000
|
|
Liabilities and stockholders' equity
Current liabilities
|
$40,800
|
$48,000
|
|
Long-term liabilities
|
143,000
|
150,000
|
|
Stockholders' equity
|
16,200
|
12,000
|
|
Total liabilities and stockholders' equity
|
$200,000
|
$210,000
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Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Ramsey using 2008 as a base.
(b) Prepare a vertical analysis of the balance sheet data for Ramsey in columnar form for 2009.