The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous Year Accounts payable $45,552 $62,400 Long-term debt 52,324 41,200 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with Enter all answers as positive numbers. Amount of Change Increase/Decrease Percentage Accounts payable Y Long-term debt % %
The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous Year Accounts payable $45,552 $62,400 Long-term debt 52,324 41,200 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with Enter all answers as positive numbers. Amount of Change Increase/Decrease Percentage Accounts payable Y Long-term debt % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Horizontal analysis
![## Horizontal Analysis
The comparative accounts payable and long-term debt balances for a company are provided below:
### Financial Data
| Account | Current Year | Previous Year |
|------------------|--------------|---------------|
| Accounts payable | $45,552 | $62,400 |
| Long-term debt | $52,324 | $41,200 |
Based on this information, determine the amount and percentage of increase or decrease that would be shown on a balance sheet using horizontal analysis. Enter all answers as positive numbers.
### Analysis Table
| Account | Amount of Change | Increase/Decrease | Percentage |
|------------------|------------------|-------------------|----------------|
| Accounts payable | $______ | ______________ | ________ % |
| Long-term debt | $______ | ______________ | ________ % |
Instructions:
1. Calculate the amount of change by subtracting the previous year's value from the current year's value.
2. Determine whether the change is an increase or decrease.
3. Calculate the percentage of change by dividing the amount of change by the previous year's value and multiply by 100 to get the percentage.
### Example Calculations
For further guidance, here is an example calculation for the "Accounts payable" row:
1. **Amount of Change**:
\[ \$45,552 - \$62,400 = -\$16,848 \]
Since the result is negative, it indicates a decrease, but input as a positive number as requested.
2. **Increase/Decrease**: Decrease
3. **Percentage**:
\[ \left( \frac{\$16,848}{\$62,400} \right) \times 100 = 27\% \]
Repeat similar steps for "Long-term debt". Ensure to fill in the analysis table with the calculated values.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0da0a9ed-480c-4a1e-9dd3-aae3fbebf8de%2F56951e05-67cb-4a0b-b055-127233ecc0ab%2Fm4unryj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:## Horizontal Analysis
The comparative accounts payable and long-term debt balances for a company are provided below:
### Financial Data
| Account | Current Year | Previous Year |
|------------------|--------------|---------------|
| Accounts payable | $45,552 | $62,400 |
| Long-term debt | $52,324 | $41,200 |
Based on this information, determine the amount and percentage of increase or decrease that would be shown on a balance sheet using horizontal analysis. Enter all answers as positive numbers.
### Analysis Table
| Account | Amount of Change | Increase/Decrease | Percentage |
|------------------|------------------|-------------------|----------------|
| Accounts payable | $______ | ______________ | ________ % |
| Long-term debt | $______ | ______________ | ________ % |
Instructions:
1. Calculate the amount of change by subtracting the previous year's value from the current year's value.
2. Determine whether the change is an increase or decrease.
3. Calculate the percentage of change by dividing the amount of change by the previous year's value and multiply by 100 to get the percentage.
### Example Calculations
For further guidance, here is an example calculation for the "Accounts payable" row:
1. **Amount of Change**:
\[ \$45,552 - \$62,400 = -\$16,848 \]
Since the result is negative, it indicates a decrease, but input as a positive number as requested.
2. **Increase/Decrease**: Decrease
3. **Percentage**:
\[ \left( \frac{\$16,848}{\$62,400} \right) \times 100 = 27\% \]
Repeat similar steps for "Long-term debt". Ensure to fill in the analysis table with the calculated values.
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