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:

Machine-Hours

A measure of the amount of time machines are used in the production process, often utilized as an allocation base for applying overhead costs to products.

Unit Product Costs

The total cost associated with producing one unit of a product, including direct materials, direct labor, and overhead.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Selling Price

Selling price is the amount at which a product or service is offered to consumers, calculated to cover costs, overheads, and profit.