The Comparative Balance Sheet of Nathan Company Appears Below Instructions
(A) Using Horizontal Analysis Show the Percentage Change for

question 44

Essay

The comparative balance sheet of Nathan Company appears below: $\begin{array}{c}\text { NATHAN COMPANY}\\\text { Comparative Balance Sheet}\\\text { December 31,}\\\\\begin{array}{lcc} \text { Assets } & 2017 & 2016 \\ \text { Current assets } & \$ 420 & \$ 333 \\ \text { Plant assets } & 780 & 567 \\\text { Total assets } & \$ 1,200 & 690 \\\\\text {Liabilities and stockholders' equity}\\\text {Current liabilities}&\$168&\$144\\\text {Long-term debt}&300&162\\\text {Common stock}&432&306\\\text {Retained earnings}&300&288\\\text {Total liabilities and stockholders' equity}&\$1,200&\$900\end{array}\end{array}$ Instructions
(a) Using horizontal analysis show the percentage change for each balance sheet item using 2016 as a base year.
(b) Using vertical analysis prepare a common size comparative balance sheet.

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Definitions:

Numerical Indexes

Measures or indicators that are expressed as numbers, often used to compare and analyze data.

Mean

The arithmetic average of a set of values, calculated by summing the values and then dividing by the number of values.

Distribution

In statistics, the way in which values of a variable are spread or dispersed across a set of data.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.