The comparative condensed balance sheets of Gurley Corporation are presented bel
ID: 2533074 • 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
$ 72,000
$ 78,000
Property, plant & equipment (net)
97,000
88,000
Intangibles
Total assets
Liabilities and stockholders' Equity
Current liabilities
$ 40,000
$ 46,000
Long-term liabilities
141,000
148,000
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
$ 72,000
Property, plant, and equipment (net)
97,000
Intangibles
Total assets
Liabilities and stockholders' equity
Current liabilities
$ 40,000
Long-term liabilities
141,000
Stockholders' equity
Total liabilities and stockholders' equity
GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31
2017
2016
Assets Current assets $ 72,000 $ 78,000 Property, plant, and equipment (net) 97,000 88,000 Intangibles 25,000 38,000 Total assets $ 194,000 $ 204,000 Liabilities and stockholders’ equity Current liabilities $ 40,000 $ 46,000 Long-term liabilities 141,000 148,000 Stockholders’ equity 13,000 10,000 Total liabilities and stockholders’ equity $ 194,000 $ 204,000Explanation / Answer
Solution:
Gurley Corporation Horizental Analysis - Condensed Balance Sheet For the year ended December 31 Particulars 2017 2016 Increase (Decrease) % change from 2016 Assets: Current Assets $72,000.00 $78,000.00 -$6,000.00 -7.69% Property, Plant & Equipment (Net) $97,000.00 $88,000.00 $9,000.00 10.23% Intangibles $25,000.00 $38,000.00 -$13,000.00 -34.21% Total Assets $194,000.00 $204,000.00 -$10,000.00 -4.90% Liabilities and stockholders' Equity: Current liabilities $40,000.00 $46,000.00 -$6,000.00 -13.04% Long-term liabilities $141,000.00 $148,000.00 -$7,000.00 -4.73% Stockholders' equity $13,000.00 $10,000.00 $3,000.00 30.00% Total liabilities and stockholders' equity $194,000.00 $204,000.00 -$10,000.00 -4.90%