Cash and equivalents 14,000 16,000 Receivables 28,800 55,600 Inventories 54,000 85,600 Prepayments and others 4,800 7,400 Total current assets 101,600 164,600 Property, Plant and equipment (net of depreciation) 30,200 73,400 Total Assets 131,800 238,000 Liabilities and Equity Notes payable to bank 10,000 54,000 Accounts payable 31,600 55,400 Accrued liabilities 4,200 6,800 Income taxes payable 5,800 7,000 Total current liabilities 51,600 123,200 Owner's equity 114,800 238,000 80,200 Total Liabilities and Owner's Equity 131,800 XYZ Trading Income Statement Years Ended December 31, 20X1 and 20x2 20x1 20x2 Net Sales 266,400 424,000 Cost of goods sold Gross profit Selling, general and administrative expenses 191,400 75,000 314,600 109,400 35,500 58,400 Net income 39,500 51,000
Cash and equivalents 14,000 16,000 Receivables 28,800 55,600 Inventories 54,000 85,600 Prepayments and others 4,800 7,400 Total current assets 101,600 164,600 Property, Plant and equipment (net of depreciation) 30,200 73,400 Total Assets 131,800 238,000 Liabilities and Equity Notes payable to bank 10,000 54,000 Accounts payable 31,600 55,400 Accrued liabilities 4,200 6,800 Income taxes payable 5,800 7,000 Total current liabilities 51,600 123,200 Owner's equity 114,800 238,000 80,200 Total Liabilities and Owner's Equity 131,800 XYZ Trading Income Statement Years Ended December 31, 20X1 and 20x2 20x1 20x2 Net Sales 266,400 424,000 Cost of goods sold Gross profit Selling, general and administrative expenses 191,400 75,000 314,600 109,400 35,500 58,400 Net income 39,500 51,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Evaluate the company's short-term solvency, long-term financial position and profitability using the horizontal analysis.
Transcribed Image Text:Problem 1. The following data are available for XYZ Trading for years 20x1
and 20x2
XYZ Trading
Statement of Financial Position
December 31, 20x1 and 20x2
Assets
20x1
20x2
Cash and equivalents
14,000
16,000
Receivables
28,800
55,600
Inventories
54,000
85,600
4,800
101,600
Prepayments and others
7,400
Total current assets
164,600
Property, Plant and equipment (net of depreciation)
30,200
73,400
Total Assets
131,800
238,000
Liabilities and Equity
Notes payable to bank
10,000
54,000
Accounts payable
31,600
55,400
Accrued liabilities
4,200
6,800
Income taxes payable
5,800
7,000
Total current liabilities
51,600
123,200
Owner's equity
Total Liabilities and Owner's Equity
80,200
114,800
238,000
131,800
XYZ Trading
Income Statement
Years Ended December 31, 20X1 and 20x2
20x1
20x2
Net Sales
266,400
424,000
Cost of goods sold
Gross profit
Selling, general and administrative expenses
191,400
314,600
109,400
58,400
51,000
75,000
35,500
Net income
39,500
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