YEAR 1 YEAR 2 ASSETS CURRENT ASSETS Cash 1,669,560 2,896,540 Accounts Receivable 740,000 850,000 Allowance for doubtful accounts -16,000 -20,000 Merchandise Inventory 470,000 610,000 Supplies 70,000 93,000 Prepaid Rent 45,000 10,000 TOTAL CURRENT ASSETS 2,978,560 4,439,540
YEAR 1 YEAR 2 ASSETS CURRENT ASSETS Cash 1,669,560 2,896,540 Accounts Receivable 740,000 850,000 Allowance for doubtful accounts -16,000 -20,000 Merchandise Inventory 470,000 610,000 Supplies 70,000 93,000 Prepaid Rent 45,000 10,000 TOTAL CURRENT ASSETS 2,978,560 4,439,540
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
With the given statement of financial position below, conduct a vertical analysis.
![YEAR 1
YEAR 2
ASSETS
CURRENT ASSETS
Cash
1,669,560
2,896,540
Accounts Receivable
740,000
850,000
Allowance for doubtful accounts
-16,000
-20,000
Merchandise Inventory
470,000
610,000
Supplies
70,000
93,000
Prepaid Rent
45,000
10,000
TOTAL CURRENT ASSETS
2,978,560
4,439,540
NON-CURRENT ASSETS
Store Equipment
1,000,000
1,200,000
Accumulated Depreciation- Store Equipment
-265,000
-300,000
TOTAL NON-CURRENTS ASSETS
735,000
900,000
TOTAL ASSETS
3,713,560
5,339,540
LIABILITIES
CURRENT LIABILITIES
Accounts Payable
1,090,000
1,000,000
Salaries Payable
36,000
25,000
Utilities Payable
12,000
10,500
TOTAL CURRENT LIABILITIES
1,138,000
1,035,500
NON-CURRENT LIABILITIES
Notes Payable
400,000
356,000
TOTAL NON-CURRENT LIABILITIES
400,000
356,000
TOTAL LIABILITIES
1,538,000
1,391,500
OWNER'S EQUITY
Heels & Feels, Capital
2,175,560
3,948,040
TOTAL LIABILITIES & OWNER'S EQUITY
3,713,560
5,339,540](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5459c25-7f0b-4939-b7e4-169feebb5d6d%2F9e04a710-8a36-4f89-8df2-2d7167957ba5%2Fx6y58h5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:YEAR 1
YEAR 2
ASSETS
CURRENT ASSETS
Cash
1,669,560
2,896,540
Accounts Receivable
740,000
850,000
Allowance for doubtful accounts
-16,000
-20,000
Merchandise Inventory
470,000
610,000
Supplies
70,000
93,000
Prepaid Rent
45,000
10,000
TOTAL CURRENT ASSETS
2,978,560
4,439,540
NON-CURRENT ASSETS
Store Equipment
1,000,000
1,200,000
Accumulated Depreciation- Store Equipment
-265,000
-300,000
TOTAL NON-CURRENTS ASSETS
735,000
900,000
TOTAL ASSETS
3,713,560
5,339,540
LIABILITIES
CURRENT LIABILITIES
Accounts Payable
1,090,000
1,000,000
Salaries Payable
36,000
25,000
Utilities Payable
12,000
10,500
TOTAL CURRENT LIABILITIES
1,138,000
1,035,500
NON-CURRENT LIABILITIES
Notes Payable
400,000
356,000
TOTAL NON-CURRENT LIABILITIES
400,000
356,000
TOTAL LIABILITIES
1,538,000
1,391,500
OWNER'S EQUITY
Heels & Feels, Capital
2,175,560
3,948,040
TOTAL LIABILITIES & OWNER'S EQUITY
3,713,560
5,339,540
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