Calculate Vertical and Horizontal Ratio Analysis? Weler CorporationComparative Balance Sheet(dollars in thousands)This YearLast YearAssetsCurrent assets:CashAccounts receivable, net•InventoryPrepaid expensesTotal current assets$1,28012,3009,7001,80025,080$1,5609,1008,2002,10020,960Property and equipment:LandBuildings and equipment, netTotal property and equipmentTotal assets6,00019,20025,200$50,2806,00019,00025,000$45,960Liabilities and Stockholders' EquityCurrent liabilities:Accounts payableAccrued payablesNotes payable, short termTotal current liabilitiesLong-term liabilities:Bonds payableTotal liabilitiesStockholders' equity:Preferred stockCommon stockAdditional paid-in capitalTotal paid-in capitalRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equity$9,500600300$8,30070010,4003009,3005,00015,4005,00014,3002,0008002,2005,00029,88034,880$50,2802,0008002,2005,00026,66031,660$45,960

Ratios refer to the measurement of the relation between two sums. In accounting, ratio analysis is…

Answered: Calculate Vertical and Horizontal Ratio…

Business

Accounting

Calculate Vertical and Horizontal Ratio Analysis?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.3.3MBA

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Concept explainers

Cost-Volume-Profit Analysis

Cost Volume Profit (CVP) analysis is a cost accounting method that analyses the effect of fluctuating cost and volume on the operating profit. Also known as break-even analysis, CVP determines the break-even point for varying volumes of sales and cost structures. This information helps the managers make economic decisions on a short-term basis. CVP analysis is based on many assumptions. Sales price, variable costs, and fixed costs per unit are assumed to be constant. The analysis also assumes that all units produced are sold and costs get impacted due to changes in activities. All costs incurred by the company like administrative, manufacturing, and selling costs are identified as either fixed or variable.

Marginal Costing

Marginal cost is defined as the change in the total cost which takes place when one additional unit of a product is manufactured. The marginal cost is influenced only by the variations which generally occur in the variable costs because the fixed costs remain the same irrespective of the output produced. The concept of marginal cost is used for product pricing when the customers want the lowest possible price for a certain number of orders. There is no accounting entry for marginal cost and it is only used by the management for taking effective decisions.

Question

Calculate Vertical and Horizontal Ratio Analysis?

Weler Corporation
Comparative Balance Sheet
(dollars in thousands)
This Year
Last Year
Assets
Current assets:
Cash
Accounts receivable, net
•Inventory
Prepaid expenses
Total current assets
$1,280
12,300
9,700
1,800
25,080
$1,560
9,100
8,200
2,100
20,960
Property and equipment:
Land
Buildings and equipment, net
Total property and equipment
Total assets
6,000
19,200
25,200
$50,280
6,000
19,000
25,000
$45,960
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Accrued payables
Notes payable, short term
Total current liabilities
Long-term liabilities:
Bonds payable
Total liabilities
Stockholders' equity:
Preferred stock
Common stock
Additional paid-in capital
Total paid-in capital
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
$9,500
600
300
$8,300
700
10,400
300
9,300
5,000
15,400
5,000
14,300
2,000
800
2,200
5,000
29,880
34,880
$50,280
2,000
800
2,200
5,000
26,660
31,660
$45,960

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