The comparative balance sheets of XYZ Healthcare are presented here. XYZ Healthc
ID: 346699 • Letter: T
Question
The comparative balance sheets of XYZ Healthcare are presented here.
XYZ Healthcare
Comparative Balance Sheets
December 31
($ in millions)
Assets 2017 2016
Current assets $17,275 $17,238
Property, plant, and equipment (net) 15,137 15,303
Other assets 52,556 46,526
Total assets $84,968 $79,067
Liabilities and Stockholders’ Equity
Current liabilities $20,653 $26,976
Long-term liabilities 44,695 37,086
Stockholders’ equity 19,620 15,005
Total liabilities and stockholders’ equity $84,968 $79,067
Instructions
Prepare a percentage change analysis of the balance sheet data for XYZ Healthcare.
Prepare a common size analysis of the balance sheet data for XYZ Healthcare for 2017.
Explanation / Answer
There is a reduction of 23.44% in current liabilites, which means company is reducing its accout payables, notes payable, and other short term borrowings. The long term liabilites have increased, which means the company is borrowing long term and is thinking about long term. Equity has also increased by over 30%.
ITEM 2016 2017 %age Change analysis Current Assets 17,238 17,275 0.214% Property, plant 15,303 15,137 -1.08% Other assets 46,526 52,556 12.96% Total Assets 79,067 84,968 7.46% Current liabilities 26,976 20,653 -23.44% Long term liabilities 37,086 44,695 20.52% Equity 15,005 19,620 30.76% Total Liabilities & equity 79,067 84,968 7.46%