The comparative condensed balance sheets of Conard Corporation are pre

QUESTION

The comparative condensed balance sheets of Conard Corporation are presented below.Instructions(a) Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2010 as a base.(b) Prepare a vertical analysis of the balance sheet data for Conard Corporation in columnar form for2011.
Answer A Horizontal Analysis 2011 2010 Variance Assets Current Assets $ 74,000 $ 80,000 $ (6,000) ($ 74,000 less $ 80,000) Property plant and equipment $ 99,000 $ 90,000 $ 9,000 ($ 99,000 less $ 90,000) Intangibles $ 27,000 $ 40,000 $ (13,000) ($ 27,000 less $ 40,000) Total Assets $ 200,000 $ 210,000 $ (10,000) ($ 200,000 less $ 210,000) Liabilities and Stockholders equity Current Liabilities $ 42,000 $ 48,000 $ (6,000) ($ 42,000 less $ 48,000) Long term liabilities $ 143,000 $ 150,000 $ (7,000) ($ 143,000 less $ 150,000) Stockholders equity $ 15,000 $ 12,000 $ 3,000 ($ 15,000 less $ 12,000) Total Liabilities and Stockholders equity $ 200,000 $ 210,000 $ (10,000) ($ 200,000 less $ 210,000) Answer B Vertical Analysis 2011 Percent Assets¦

rent Assets $ 74,000 37.00% ($ 74,000/$ 200,000 * 100) Property plant and equipment $ 99,000 49.50% ($ 99,000/$ 200,000 * 100) Intangibles $ 27,000 13.50% ($ 27,000/$ 200,000 * 100) Total Assets $ 200,000 100.00% Liabilities and Stockholders equity Current Liabilities $ 42,000 21.00% ($ 42,000/$ 200,000 * 100) Long term liabilities $ 143,000 71.50% ($ 143,000/$ 200,000 * 100) Stockholders equity $ 15,000 7.50% ($ 15,000/$ 200,000 * 100) Total Liabilities and Stockholders equity $ 200,000 100.00%

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