Question - The comparative balance sheet of Ramos Company appears below:
RAMOS COMPANY Comparative Balance Sheet
December 31, 2009
Assets 2009 2008
Current assets $ 440 $280
Plant assets 675 520
Total assets $1,115 $800
Liabilities and stockholders' equity
Current liabilities $ 280 $120
Long-term debt 250 160
Common stock 325 320
Retained earnings 260 200
Total liabilities and stockholders' equity $1,115 $800
Instructions
(a) Using horizontal analysis, show the percentage change for each balance sheet item using 2008 as a base year.
(b) Using vertical analysis, prepare a common size comparative balance sheet.