FINANCIAL ANALYSIS

Financial Analysis

Case Study 21-1, p. 768

1. Construct a comparative balance sheet for Contemporary Wood Furniture for year-end 2010 and 2011, including a vertical and horizontal analysis of the comparative balance sheet. Express percents to the nearest tenth of a percent.

Increase / (Decrease)

Assets

2011

Percent

2010

Percent

Amount

Percent

Cash and Equivalents

$1,844

1.01%

$3,278

1.90%

(1,434)

-43.75%

Accounts Receivable

$11,807

6.49%

$6,954

4.04%

4,853

69.79%

Inventory

$9,628

5.29%

$17,417

10.12%

(7,789)

-44.72%

Total Current Assets

23,279

12.79%

27,649

16.06%

-4,370

-15.81%

Plant & Equipment

$158,700

87.21%

$144,500

83.94%

14,200

9.83%

Total Assets

181,979

100.00%

172,149

100.00%

9,830

5.71%

Liabilities and Owner's Equity

 

 

 

 

 

 

Accounts Payable

$13,446

7.39%

$9,250

5.37%

4,196

45.36%

Wages Payable

$650

0.36%

$1,110

0.64%

(460)

-41.44%

Property & Taxes Payable

$4,124

2.27%

$3,650

2.12%

474

12.99%

Total Current Liabilities

18,220

10.01%

14,010

8.14%

4,210

30.05%

Long-term Debt

$92,800

50.99%

$75,800

44.03%

...