Please find below a comparative balance sheet: HUERTO COMPANY Comparative Balanc
ID: 2501999 • Letter: P
Question
Please find below a comparative balance sheet: HUERTO COMPANY Comparative Balance Sheet December 31, 2007 Assets 2007 2006 Current assets $ 340 $280 Plant assets 675 520 Total assets $1,015 $800 Liabilities and stockholders' equity Current liabilities $ 180 $120 Long-term debt 250 160 Common stock 325 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,015 $800 Instructions (a) Using horizontal analysis, show the percentage change for each balance sheet item using 2006 as a base year. (b) Using vertical analysis, prepare a common size comparative balance sheet.
Explanation / Answer
Huerto Company Comparative Balance sheet Dec 31,2007 Dec 31,2007 Dec 31,2006 Dec 31,2006 Amount Percent(%) Amount Percent(%) Percentage Change(%) Ans (b) Ans (b) Ans (b) Ans (b) Ans(a) Assets Current Assets $ 340.00 33 $ 280.00 35 21 Plant Assets $ 675.00 67 $ 520.00 65 30 Total Assets $ 1,015.00 100 $ 800.00 100 27 Liabilities & Stockholder's Equity Current Liability $ 180.00 18 $ 120.00 15 50 Long Term debt $ 250.00 25 $ 160.00 20 56 Common Stock $ 325.00 32 $ 320.00 40 2 Retained Earnings $ 260.00 26 $ 200.00 25 30 Total Liabilities & Stockholder's Equity $ 1,015.00 100 $ 800.00 100 27