Homework Help is Here – Start Your Trial Now!
Business
Accounting
Use the consolidated balance sheets which give historical data for a particular business. CONSOLIDATED BALANCE SHEETS (in millions) ASSETS Current Assets: Cash and Cash Equivalents Receivables Merchandise Inventories Prepaid Expenses and Other Current Assets Total Current Assets Property and Equipment-Net Goodwill Other Intangible Assets-Net Other Assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-Term Debt Merchandise Accounts Payable Accounts Payable and Accrued Liabilities Income Taxes Deferred Income Taxes Total Current Liabilities Long-Term Debt Deferred Income Taxes Other Liabilities Shareholders' Equity Total Liabilities and Shareholders' Equity February 1, 2014 $2,473 448 5,657 430 9,008 7,930 3,743 527 746 $21,634 February 1, 2014 $453 1,681 2,710 372 300 5,516 6,728 1,273 1,658 6,249 $21,634 February 2, 2013 $1,826 381 5,408 351 7,966 8,196 3,743 561 615 $20,991 February 2, 2013 $124 1,579 2,610 355 407 5,075 6,806 1,238 1,821 6,051 $20,991

Use the consolidated balance sheets which give historical data for a particular business. CONSOLIDATED BALANCE SHEETS (in millions) ASSETS Current Assets: Cash and Cash Equivalents Receivables Merchandise Inventories Prepaid Expenses and Other Current Assets Total Current Assets Property and Equipment-Net Goodwill Other Intangible Assets-Net Other Assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-Term Debt Merchandise Accounts Payable Accounts Payable and Accrued Liabilities Income Taxes Deferred Income Taxes Total Current Liabilities Long-Term Debt Deferred Income Taxes Other Liabilities Shareholders' Equity Total Liabilities and Shareholders' Equity February 1, 2014 $2,473 448 5,657 430 9,008 7,930 3,743 527 746 $21,634 February 1, 2014 $453 1,681 2,710 372 300 5,516 6,728 1,273 1,658 6,249 $21,634 February 2, 2013 $1,826 381 5,408 351 7,966 8,196 3,743 561 615 $20,991 February 2, 2013 $124 1,579 2,610 355 407 5,075 6,806 1,238 1,821 6,051 $20,991

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Use the consolidated balance sheets which give historical data for a particular business. CONSOLIDATED BALANCE SHEETS (in millions) ASSETS Current Assets: Cash and Cash Equivalents Receivables Merchandise Inventories Prepaid Expenses and Other Current Assets Total Current Assets Property and Equipment-Net Goodwill Other Intangible Assets-Net Other Assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-Term Debt Merchandise Accounts Payable Accounts Payable and Accrued Liabilities Income Taxes Deferred Income Taxes Total Current Liabilities Long-Term Debt Deferred Income Taxes Other Liabilities Shareholders' Equity Total Liabilities and Shareholders' Equity February 1, 2014 $2,473 448 5,657 430 9,008 7,930 3,743 527 746 $21,634 February 1, 2014 $453 1,681 2,710 372 300 5,516 6,728 1,273 1,658 6,249 $21,634 February 2, 2013 $1,826 381 5,408 351 7,966 8,196 3,743 561 615 $20,991 February 2, 2013 $124 1,579 2,610 355 407 5,075 6,806 1,238 1,821 6,051 $20,991
Transcribed Image Text:Use the consolidated balance sheets which give historical data for a particular business. CONSOLIDATED BALANCE SHEETS (in millions) ASSETS Current Assets: Cash and Cash Equivalents Receivables Merchandise Inventories Prepaid Expenses and Other Current Assets Total Current Assets Property and Equipment-Net Goodwill Other Intangible Assets-Net Other Assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-Term Debt Merchandise Accounts Payable Accounts Payable and Accrued Liabilities Income Taxes Deferred Income Taxes Total Current Liabilities Long-Term Debt Deferred Income Taxes Other Liabilities Shareholders' Equity Total Liabilities and Shareholders' Equity February 1, 2014 $2,473 448 5,657 430 9,008 7,930 3,743 527 746 $21,634 February 1, 2014 $453 1,681 2,710 372 300 5,516 6,728 1,273 1,658 6,249 $21,634 February 2, 2013 $1,826 381 5,408 351 7,966 8,196 3,743 561 615 $20,991 February 2, 2013 $124 1,579 2,610 355 407 5,075 6,806 1,238 1,821 6,051 $20,991
(a) Prepare a horizontal analysis of the Current Assets section comparing February 2, 2013 and February 1, 2014. (Round percents to one decimal place.) Comparative Balance Sheet February 1, 2014 and February 2, 2013 (in $ millions) Current Assets Cash and Cash Equivalents Receivables Merchandise Inventories Prepaid Expenses and Other Current Assets Total Current Assets Current Liabilities (in $ millions) Short-Term Debt Merchandise Accounts Payable Accounts Payable and Accrued Liabilities Income Taxes Deferred Income Taxes Total Current Liabilities $ $ $ $ $ $ $ $ $ $ $ 2014 $ $ $ $ 2013 (b) Prepare a vertical analysis of the Current Liabilities section for February 1, 2014. (Round percents to one decimal place.) Balance Sheet February 1, 2014 Percent % % % % % $ $ $ $ $ % Increase (Decrease) Amount Percent % % % % %
Transcribed Image Text:(a) Prepare a horizontal analysis of the Current Assets section comparing February 2, 2013 and February 1, 2014. (Round percents to one decimal place.) Comparative Balance Sheet February 1, 2014 and February 2, 2013 (in $ millions) Current Assets Cash and Cash Equivalents Receivables Merchandise Inventories Prepaid Expenses and Other Current Assets Total Current Assets Current Liabilities (in $ millions) Short-Term Debt Merchandise Accounts Payable Accounts Payable and Accrued Liabilities Income Taxes Deferred Income Taxes Total Current Liabilities $ $ $ $ $ $ $ $ $ $ $ 2014 $ $ $ $ 2013 (b) Prepare a vertical analysis of the Current Liabilities section for February 1, 2014. (Round percents to one decimal place.) Balance Sheet February 1, 2014 Percent % % % % % $ $ $ $ $ % Increase (Decrease) Amount Percent % % % % %
Expert Solution
Step 1: Define of vertical analysis

The vertical analysis refers to where each line item is presented in a financial statement as a percentage of the base figure within the financial statement. it shows how much each line item constitutes the base figure. for example how much short-term debt contributes to the total current liabilities. 

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Double entry bookkeeping system
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS