9. Loloy, the owner of Loloy Trading has been eager to know about the periodic changes in each of the items in his business' statement of financial positions. Loloy would want to know how each account has changed from the past two years, 2012 and 2013. Loloy Trading Statements of Financial Position December 31 Assets 2013 2012 Cash P 80,000 P 60,000 Trading Securities 30,000 30,000 Accounts Receivable 90,000 60,000 Merchandise Inventory 80,000 64,000 Prepaid Expenses 10,000 8,000 Total Current Assets P 290,000 P 222,000 Property, Plant, and Equipment (net) 185,000 170,000 Total Assets P 475,000 P 392,000 Liabilities and Owner's Equity Accounts Payable P 27,000 P 18,000 Salaries Payable 40,000 32,000 Utilities Payable 15,000 10,000 Taxes Payable 20,000 12,000 Total Current Liabilities P 102,000 P 72,000 Notes Payable (due 2016) 120,000 120,000 Total Liabilities P 222,000 P 192,000 Owner, Capital 253,000 200,000 Total Liabilities and Owner's Equity P 475,000 P 392,000 Prepare a horizontal analysis of Loloy's Statement of Financial Positions. Analyze the change in each account. Identify accounts that Loloy should put more attention to.

9. Loloy, the owner of Loloy Trading has been eager to know about the periodic changes in each of the items in his business' statement of financial positions. Loloy would want to know how each account has changed from the past two years, 2012 and 2013. Loloy Trading Statements of Financial Position December 31 Assets 2013 2012 Cash P 80,000 P 60,000 Trading Securities 30,000 30,000 Accounts Receivable 90,000 60,000 Merchandise Inventory 80,000 64,000 Prepaid Expenses 10,000 8,000 Total Current Assets P 290,000 P 222,000 Property, Plant, and Equipment (net) 185,000 170,000 Total Assets P 475,000 P 392,000 Liabilities and Owner's Equity Accounts Payable P 27,000 P 18,000 Salaries Payable 40,000 32,000 Utilities Payable 15,000 10,000 Taxes Payable 20,000 12,000 Total Current Liabilities P 102,000 P 72,000 Notes Payable (due 2016) 120,000 120,000 Total Liabilities P 222,000 P 192,000 Owner, Capital 253,000 200,000 Total Liabilities and Owner's Equity P 475,000 P 392,000 Prepare a horizontal analysis of Loloy's Statement of Financial Positions. Analyze the change in each account. Identify accounts that Loloy should put more attention to.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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