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The comparative condensed balance sheets of Gurley Corporation are presented bel

ID: 2487121 • Letter: T

Question

The comparative condensed balance sheets of Gurley Corporation are presented below.

GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31

2017

2016


(a)

Prepare a horizontal analysis of the balance sheet data for Gurley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)

2017

2016

Increase
(Decrease)

Percentage
Change from 2016

Assets

   Current assets

$ 73,500

$ 81,900

   Property, plant & equipment (net)

97,500

89,400

   Intangibles

   Total assets

Liabilities and stockholders' Equity

   Current liabilities

$ 41,800

$ 48,000

   Long-term liabilities

143,800

151,400

   Stockholders' equity

   Total liabilities and stockholders' equity


(b)

Prepare a vertical analysis of the balance sheet data for Gurley Corporation in columnar form for 2017. (Round percentages to 1 decimal place, e.g. 12.3%.)

Amount

Percent

Assets

   Current assets

$ 73,500

   Property, plant, and equipment (net)

97,500

   Intangibles

Total assets

Liabilities and stockholders' equity

   Current liabilities

$ 41,800

   Long-term liabilities

143,800

   Stockholders' equity

Total liabilities and stockholders' equity

GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31

2017

2016

Assets     Current assets $ 73,500 $ 81,900     Property, plant, and equipment (net) 97,500 89,400     Intangibles 28,800 42,000       Total assets $ 199,800 $ 213,300 Liabilities and stockholders’ equity     Current liabilities $ 41,800 $ 48,000     Long-term liabilities 143,800 151,400     Stockholders’ equity 14,200 13,900       Total liabilities and stockholders’ equity $ 199,800 $ 213,300

Explanation / Answer

GURLEY CORPORATION Condensed Balance Sheets December 31For the Year Ended December 31For the Quarter Ended December 31 2017 2016 Increase Percentage (Decrease) Change from 2016 Assets    Current assets $ 73,500 $ 81,900 $ -8,400 -10.26%    Property, plant & equipment (net) 97,500 89,400 $ 8,100 9.06%    Intangibles 28,800 42,000 $ -13,200 -31.43%    Total assets $ 199,800 $ 213,300 $ -13,500 -6.33% Liabilities and stockholders' Equity    Current liabilities $ 41,800 $ 48,000 $ -6,200 -12.92%    Long-term liabilities 143,800 151,400 $ -7,600 -5.02%    Stockholders' equity 14,200 13,900 $ 300 2.16%    Total liabilities and stockholders' equity $ 199,800 $ 213,300 $ -13,500 -6.33% GURLEY CORPORATION Condensed Balance Sheet For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017December 31, 2017 Amount Percent Assets    Current assets $ 73,500 36.79%    Property, plant, and equipment (net) 97,500 48.80%    Intangibles 28,800 14.41% Total assets $ 199,800 100.00% Liabilities and stockholders' equity    Current liabilities $ 41,800 20.92%    Long-term liabilities 143,800 71.97%    Stockholders' equity 14,200 7.11% Total liabilities and stockholders' equity $ 199,800 100.00%