Use the current asset section of the balance sheets of the Waverley Company as of June 30, 2017 and 2016 presented below to answer the questions that follow. 2017 2016 Cash and cash equivalents R 75,000 R 58,800 Trade accounts receivable, net 157,500 193,200 Inventory 208,200 253,400 Other current assets 18,400 15,500 Total current assets R 459,100 R 520,900 Total assets R2,650,000 R3,430,000 Required: Complete a horizontal analysis of the current asset section of Waverley Company’s balance sheet for 2017. Your answers for “% Change” should be rounded to one decimal place, e.g., 10.3%. Provide a short evaluation of this analysis.

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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Use the current asset section of the balance sheets of the Waverley Company as of June 30, 2017 and 2016 presented below to answer the questions that follow.

2017 2016
Cash and cash equivalents R 75,000 R 58,800
Trade accounts receivable, net 157,500 193,200
Inventory 208,200 253,400
Other current assets 18,400 15,500
Total current assets R 459,100 R 520,900
Total assets R2,650,000 R3,430,000
Required:
Complete a horizontal analysis of the current asset section of Waverley Company’s balance sheet for 2017. Your answers for “% Change” should be rounded to one decimal place, e.g., 10.3%. Provide a short evaluation of this analysis.

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