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Prepare vertical analysis for ABC company both the years.

Prepare vertical analysis for ABC company both the years.

FINANCIAL ACCOUNTING
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 vertical analysis for ABC company both the years.

YEAR 1 YEAR 2 ASSETS CURRENT ASSETS Cash 1,669,560 2,896,540 Accounts Receivable 740,000 850,000 -20,000 Allowance for doubtful accounts -16,000 Merchandise Inventory 470,000 610,000 Supplies 70,000 93,000 Prepaid Rent TOTAL CURRENT ASSETS 45,000 10,000 2,978,560 4,439,540 NON-CURRENT ASSETS 1,000,000 1,200,000 Store Equipment Accumulated Depreciation- Store Equipment -265,000 735,000 300,000 TOTAL NON-CURRENTS ASSETS 900,000 TOTAL ASSETS 3,713,560 5.339,540 LIABILITIES CURRENT LIABILITIES Accounts Payable Salaries Payable Utilities Payable 1,090,000 36,000 1,000,000 25,000 12,000 10,500 TOTAL CURRENT LIABILITIES 1,138,000 1,035,500 NON-CURRENT LIABILITIES Notes Payable 400,000 356,000 TOTAL NON-CURRENT LIABILITIES 400,000 356,000 TOTAL LIABILITIES 1,538,000 1,391,500 OWNER'S EQUITY Heels & Feels, Capital 2,175,560 3,948,040 TOTAL LIABILITIES & OWNER'S EQUITY 3,713.560 5.339,540
Transcribed Image Text:YEAR 1 YEAR 2 ASSETS CURRENT ASSETS Cash 1,669,560 2,896,540 Accounts Receivable 740,000 850,000 -20,000 Allowance for doubtful accounts -16,000 Merchandise Inventory 470,000 610,000 Supplies 70,000 93,000 Prepaid Rent TOTAL CURRENT ASSETS 45,000 10,000 2,978,560 4,439,540 NON-CURRENT ASSETS 1,000,000 1,200,000 Store Equipment Accumulated Depreciation- Store Equipment -265,000 735,000 300,000 TOTAL NON-CURRENTS ASSETS 900,000 TOTAL ASSETS 3,713,560 5.339,540 LIABILITIES CURRENT LIABILITIES Accounts Payable Salaries Payable Utilities Payable 1,090,000 36,000 1,000,000 25,000 12,000 10,500 TOTAL CURRENT LIABILITIES 1,138,000 1,035,500 NON-CURRENT LIABILITIES Notes Payable 400,000 356,000 TOTAL NON-CURRENT LIABILITIES 400,000 356,000 TOTAL LIABILITIES 1,538,000 1,391,500 OWNER'S EQUITY Heels & Feels, Capital 2,175,560 3,948,040 TOTAL LIABILITIES & OWNER'S EQUITY 3,713.560 5.339,540
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