Evangel Inn’s balance sheets from 2014 and 2015 are as follows. Conduct a horizontal analysis (comparative analysis) for the balance sheets This question is divided into three parts: Part 1 2014 2015 $ change % change Current Assets: Cash 20000 60000 Marketable Securities 20000 25000 5000 25.00 Accounts Receivable 90000 115000 25000 27.78 Inventory 15000 20000 5000 33.33 Prepaid Expenses 15000 5000 Total Current Assets 65000 40.63 Fixed Assets Land 450000 450000 0 0.00 Buildings 2000000 2000000 0 0.00 Equipment 500000 610000 Less: Accumulated Depreciation -1000000 -130000 -300000 30.00 Net Fixed Assets 1950000 1760000 -190000 -9.74 Other Assets—Franchise Fees 250000 540000 290000 116.00 Total Assets 2360000 2525000 165000 6.99 Current Liabilities: Accounts Payable 25000 35000 Current Maturities of Long-Term Debt 50000 50000 0 0.00 Wages Payable 15000 15000 0 0.00 Dividends Payable 20000 15000 Total Current Liabilities 5000 4.55 Long Term Debt 1000000 1050000 50000 5.00 Total Liabilities 1110000 1165000 Owner's Equity Common Stock 1150000 1,135,000 Retained Earnings 100,000 225,000 125,000 125.00 Total Owner's Equity Total Liabilities and Owner's Equity 2360000 2525000 165000 6.99

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.10E

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Question

Evangel Inn’s balance sheets from 2014 and 2015 are as follows. Conduct a horizontal analysis (comparative analysis) for the balance sheets

This question is divided into three parts: Part 1

	2014	2015	$ change	% change
Current Assets:
Cash	20000	60000
Marketable Securities	20000	25000	5000	25.00
Accounts Receivable	90000	115000	25000	27.78
Inventory	15000	20000	5000	33.33
Prepaid Expenses	15000	5000
Total Current Assets			65000	40.63
Fixed Assets
Land	450000	450000	0	0.00
Buildings	2000000	2000000	0	0.00
Equipment	500000	610000
Less: Accumulated Depreciation	-1000000	-130000	-300000	30.00
Net Fixed Assets	1950000	1760000	-190000	-9.74
Other Assets—Franchise Fees	250000	540000	290000	116.00
Total Assets	2360000	2525000	165000	6.99
Current Liabilities:
Accounts Payable	25000	35000
Current Maturities of Long-Term Debt	50000	50000	0	0.00
Wages Payable	15000	15000	0	0.00
Dividends Payable	20000	15000
Total Current Liabilities			5000	4.55
Long Term Debt	1000000	1050000	50000	5.00
Total Liabilities	1110000	1165000
Owner's Equity
Common Stock	1150000	1,135,000
Retained Earnings	100,000	225,000	125,000	125.00
Total Owner's Equity
Total Liabilities and Owner's Equity	2360000	2525000	165000	6.99