horizontal analysis The comparative temporary investments and inventory balances of a company follow.Current YearPrevious YearAccounts payable$57,138$53,400Long-term debt37,94455,800Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis?Amount of ChangeIncrease/DecreasePercentageAccounts payable$4%Long-term debt%

Answered: The comparative temporary investments…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

horizontal analysis

The comparative temporary investments and inventory balances of a company follow.
Current Year
Previous Year
Accounts payable
$57,138
$53,400
Long-term debt
37,944
55,800
Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis?
Amount of Change
Increase/Decrease
Percentage
Accounts payable
$4
%
Long-term debt
%

Expert Solution

Step 1

Horizontal analysis is a financial statement analysis technique that shows changes in the amounts over a period of time in the account balances. It is also known as trend analysis.

Step 2

Accounts payable:

Amount of change = 57,138-53,400 = $3,738

Trend is Increase

Percent of increase=3738/53400*100 =7%

Step by step

Solved in 3 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions