Cash and accounts receivable for Ashfall Co. are as follows: Prior Current Year Year Cash $62,400 $58,000 Accounts receivable (net) 42,000 50,000 Based on this information, what the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Use the minus sign to indicate negative numbers or decreases. Round percentages to one decimal place. Account Dollar Change Percent Change Cash Accounts Receivable
Cash and accounts receivable for Ashfall Co. are as follows: Prior Current Year Year Cash $62,400 $58,000 Accounts receivable (net) 42,000 50,000 Based on this information, what the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Use the minus sign to indicate negative numbers or decreases. Round percentages to one decimal place. Account Dollar Change Percent Change Cash Accounts Receivable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Cash and Accounts Receivable for Ashfall Co.**
**Current Year and Prior Year Figures**
- **Cash:**
- Current Year: $62,400
- Prior Year: $58,000
- **Accounts Receivable (net):**
- Current Year: $42,000
- Prior Year: $50,000
**Task**
Based on this information, calculate the amount and percentage of increase or decrease to be shown on a balance sheet using horizontal analysis. Use negative signs to indicate decreases and round percentages to one decimal place.
**Table for Calculations:**
| Account | Dollar Change | Percent Change |
|-----------------------|---------------|----------------|
| Cash | $ | % |
| Accounts Receivable | $ | % |
To calculate:
1. **Dollar Change**: Subtract the prior year amount from the current year amount.
2. **Percent Change**: (Dollar Change / Prior Year Amount) x 100. Rounding should be to one decimal place. Use a negative sign for decreases.
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