Prepare a horizontal analysis of the balance sheet. (Negative answers should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) Liabilities and Stockholders' EquityLiabilitiesCurrent liabilitiesNotes payableAccounts payableSalaries payableTotal current liabilitiesNoncurrent liabilitiesBonds payableOtherTotal noncurrent liabilitiesTotal liabilitiesStockholders' equityPreferred stock (par value $10, 4% cumulative, nonparticipating;7,300 shares authorized and issued)Common stock (no par; 50,000 shares authorized; 10,000shares issued)Retained earningsTotal stockholders' equityTotal liabilities & stockholders' equity$16,100 $112,50020,100148,70099,00031,300130,300279,00073,00073,000159,700305,700584,700 $4,50098,70014,200117,40099,00026,600125,600243,00073,00073,000137,500283,500526,50057.8% Prepare a horizontal analysis of the income statement. (Negative answers should be indicated by a minus sign. Round yourpercentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).)RevenuesSales (net)Other revenuesTotal revenuesExpensesFRANKLIN COMPANYHorizontal Analysis of Income StatementsYear 4Cost of goods soldSelling, general, and administrative expensesInterest expenseIncome tax expenseTotal expensesNet income (loss)$ 232,000 $ 210,4008,8005,700240,800216,100$119,20054,6006,20022,700202,70038,100 $Year 3< Analysis Bal Sheet102,60048,8005,40021,700178,50037,600% Change%%Analysis Inc Stmt >

Income Statement :— It is one of the financial statement that shows profitability of company during…

Answered: Prepare a horizontal analysis of the…

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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Prepare a horizontal analysis of the balance sheet. (Negative answers should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).)

Liabilities and Stockholders' Equity
Liabilities
Current liabilities
Notes payable
Accounts payable
Salaries payable
Total current liabilities
Noncurrent liabilities
Bonds payable
Other
Total noncurrent liabilities
Total liabilities
Stockholders' equity
Preferred stock (par value $10, 4% cumulative, nonparticipating;
7,300 shares authorized and issued)
Common stock (no par; 50,000 shares authorized; 10,000
shares issued)
Retained earnings
Total stockholders' equity
Total liabilities & stockholders' equity
$
16,100 $
112,500
20,100
148,700
99,000
31,300
130,300
279,000
73,000
73,000
159,700
305,700
584,700 $
4,500
98,700
14,200
117,400
99,000
26,600
125,600
243,000
73,000
73,000
137,500
283,500
526,500
57.8
%

Prepare a horizontal analysis of the income statement. (Negative answers should be indicated by a minus sign. Round your
percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).)
Revenues
Sales (net)
Other revenues
Total revenues
Expenses
FRANKLIN COMPANY
Horizontal Analysis of Income Statements
Year 4
Cost of goods sold
Selling, general, and administrative expenses
Interest expense
Income tax expense
Total expenses
Net income (loss)
$ 232,000 $ 210,400
8,800
5,700
240,800
216,100
$
119,200
54,600
6,200
22,700
202,700
38,100 $
Year 3
< Analysis Bal Sheet
102,600
48,800
5,400
21,700
178,500
37,600
% Change
%
%
Analysis Inc Stmt >

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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