The comparative condensed balance sheets of
Garcia Corporation are presented below.
Garcia
Corporation
Comparative
Condensed Balance sheets December 31
2014 2013
Assets
Current assets $76,000 $80,000
Property, plant, and equipment (net) 100,000 90,000
Intangibles 24,000 40,000
Total Assets 200,000 210,000
Liabilities
and stockholders’ equity
Current liabilities 40,000 48,000
Long term liabilities 140,000 150,000
Stockholders’ equity 20,000 12,000
.
Total Liabilities and
stockholders’ equity 200,000 210,000
:.
Instructions
(a) Prepare a horizontal analysis of the
balance sheet data for Garcia Corporation using 2013 as a base.
(b) Prepare a vertical analysis of the
balance sheet data for Garcia Corporation in columnar form for 2014.
(a) GARCIA CORPORATION
Condensed
Balance Sheets
December
31
|
|
|
|
2014
|
|
2013
|
|
Increase
(Decrease)
|
|
Percentage
Change
from
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
Current assets
Property, plant &
equipment (net)
Intangibles
Total assets
|
|
$ 76,000
100,000
24,000
$200,000
|
|
$ 80,000
90,000
40,000
$210,000
|
|
$ (4,000)
(10,000)
(16,000)
$(10,000)
|
|
(5.0%)
(11.1%)
(40.0%)
(4.8%)
|
GARCIA CORPORATION
Condensed Balance
Sheets (Continued)
December 31
|
|
|
|
2014
|
|
2013
|
|
Increase
(Decrease)
|
|
Percentage
Change
from
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stock-
holders’ equity
Current liabilities
Long-term
liabilities
Stockholders’
equity
Total liabilities and
stockholders’
equity
|
|
$ 40,000
140,000
20,000
$200,000
|
|
$ 48,000
150,000
12,000
$210,000
|
|
$ (8,000)
(10,000)
8,000)
$(10,000)
|
|
(16.7%)
(6.7%)
(66.7%)
(4.8%)
|
(b) GARCIA CORPORATION
Condensed
Balance Sheet
December
31, 2014
|
|
|
|
Amount
|
|
Percent
|
|
|
|
|
|
|
|
|
|
Assets
Current assets
Property, plant, and equipment
(net)
Intangibles
Total
assets
Liabilities
and stockholders’ equity
Current liabilities
Long-term liabilities
Stockholders’ equity
Total
liabilities and stockholders’ equity
|
|
$ 76,000
100,000
24,000
$200,000
$ 40,000
140,000
20,000
$200,000
|
|
38%
50%
12%
100%
20%
70%
10%
100%
|
