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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 Prepayments and others 4,800 7,400 Total current assets 101,600 164,600 Property, Plant and equipment (net of depreciation) 30,200 73,400 238,000 Total Assets 131,800 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 80,200 131,800 114,800 238,000 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 75,000 35,500 109,400 58,400 51,000 Net income 39,500 Required: 1. Prepare the horizontal analysis using (a) Increase (Decrease) Method and (b) Trend Percentages.

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 Prepayments and others 4,800 7,400 Total current assets 101,600 164,600 Property, Plant and equipment (net of depreciation) 30,200 73,400 238,000 Total Assets 131,800 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 80,200 131,800 114,800 238,000 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 75,000 35,500 109,400 58,400 51,000 Net income 39,500 Required: 1. Prepare the horizontal analysis using (a) Increase (Decrease) Method and (b) Trend Percentages.

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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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 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 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 Required: 1. Prepare the horizontal analysis using (a) Increase (Decrease) Method and (b) Trend Percentages. 2. 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 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 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 Required: 1. Prepare the horizontal analysis using (a) Increase (Decrease) Method and (b) Trend Percentages. 2. Evaluate the company's short-term solvency, long-term financial position and profitability using the horizontal analysis.
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