**Hansel Corporation’s Condensed Balance Sheets (20X3, 20X2, 20X1)****Assets:**- **Current assets** - 20X3: $55,000 - 20X2: $56,500 - 20X1: $70,000- **Plant & equipment, net** - 20X3: $495,000 - 20X2: $410,000 - 20X1: $440,000- **Intangible assets, net** - 20X3: $20,000 - 20X2: $27,500 - 20X1: $40,000**Total assets:**- 20X3: $570,000- 20X2: $494,000- 20X1: $550,000**Liabilities & Stockholders’ Equity:**- **Current liabilities** - 20X3: $40,000 - 20X2: $35,000 - 20X1: $32,500- **Long-term liabilities** - 20X3: $395,000 - 20X2: $310,000 - 20X1: $375,000- **Stockholders’ equity** - 20X3: $135,000 - 20X2: $149,000 - 20X1: $142,500**Total liabilities & equity:**- 20X3: $570,000- 20X2: $494,000- 20X1: $550,000*Note: In a common size balance sheet for 20X3, total liabilities and equity are expressed as percentages of total assets.*

Common size analysis is also known as vertical analysis under which each financial statement item is expressed as a percentage of base amount. Under the common sized balance sheet all the asset items are expressed as a percentage of total assets of the company. For example, if the accounts receivable is $10 and total assets are $100, accounts receivable will be expressed as 10% in the common size analysis. Similarly, all the items of liabilities and equity are expressed as a percentage of total liabilities and stockholders' equity. For example, if the accounts payable is $10 and total liabilities and stockholders' equity is $100, accounts payable will be expressed as 10% in the common size analysis. Therefore, total liabilities and equity will be expressed in 2023 as 100% since all the individual items of liabilities and equity are expressed as a percentage of total liabilities and equity.

Business

Accounting

Hansel Corporation's condensed balance sheets appear below: 20X3 20X2 20X1 Assets: $ 55,000 495,000 20,000 $ 56,500 410,000 27,500 $ 70,000 440,000 40,000 Current assets Plant & equipment, net Intangible assets, net Total assets $570,000 $494,000 $550,000 Liabilities & Stockholders' Equity: $ 40,000 395,000 $ 35,000 310,000 149,000 $494,000 $ 32,500 375,000 Current liabilities Long-term liabilities Stockholders' equity 135,000 142,500 Total liabilities & equity $570,000 $550,000

Hansel Corporation's condensed balance sheets appear below: 20X3 20X2 20X1 Assets: $ 55,000 495,000 20,000 $ 56,500 410,000 27,500 $ 70,000 440,000 40,000 Current assets Plant & equipment, net Intangible assets, net Total assets $570,000 $494,000 $550,000 Liabilities & Stockholders' Equity: $ 40,000 395,000 $ 35,000 310,000 149,000 $494,000 $ 32,500 375,000 Current liabilities Long-term liabilities Stockholders' equity 135,000 142,500 Total liabilities & equity $570,000 $550,000

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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