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

question 30

Essay

The comparative balance sheet of Delta Company appears below:

$\begin{array}{c} \text {Delta COMPANY }\\ \text {Comparative Balance Sheet}\\ \text { December 31,}\\\\\begin{array}{lrr}\hline& \underline{2014}& \underline{2013}\\ \text { Assets } &\\ \text {Current assets } &\$450&\$280\\ \text { Plant assets } & \underline{550}& \underline{520}\\ \text {Total assets } &\underline{\$1,000}&\underline{\$800}\\\\\underline{\text { Liabilities and stockholders' equity }}\\ \text {Current liabilities}&\$180&\$120\\ \text {Long-term debt}&250&160\\ \text {Common stock}&310&320\\ \text {Retained earnings}&\underline{260}&\underline{200}\\ \text {Total liabilities and stockholders' equity}&\underline{\$1,000}&\underline{\$800}\end{array}\end{array}$

Instructions
(a) Using horizontal analysis, show the percentage change for each balance sheet item using 2013 as a base year.
(b) Using vertical analysis, prepare a common size comparative balance sheet.

---

Definitions:

MP

Stands for Modus Ponens, a crucial concept in formal logic entailing that from premises of the form "If P, then Q" and "P is true," one can conclusively deduce "Q must be true."

W

A letter in the English alphabet, often used to represent work in physics or width in measurements.

CD

A compact disc, a digital optical data storage format used for storing digital audio, video, and data.

Inference Forms

Patterns of reasoning where the conclusion logically follows from the premises.