Perform a Horizontal Analysis of the Following Company's Balance Sheet

question 66

Essay

Perform a horizontal analysis of the following company's balance sheet. Include both the amount and the percentage of change for each account.
$$\begin{array} { | l | r | r | r | r | } \hline \text { Account } &{ \mathbf { 2 0 1 1 } } & { \mathbf { 2 0 1 0 } } & \text { Change Amount } & \text { Change Percent } \\\hline \text { Current assets } & \$ 121,000 & \$ 100,000 & & \\\hline \text { Accounts receivable } & 117,000 & 125,000 & & \\\hline \text { Merchandise inventory } & 70,000 & 85,000 & & \\\hline \text { Current liabilities } & 63,500 & 50,000 & & \\\hline \text { Long-term liabilities } & 100,000 & 100,000 & & \\\hline \text { Common stock } & 50,000 & 50,000 & & \\\hline \text { Retained earnings } & 94,500 & 110,000 & & \\\hline\end{array}$$

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Definitions:

Plasma

The liquid component of blood in which blood cells are suspended, consisting mostly of water and proteins.

Agglutination

The clumping together of particles, typically cells or proteins, that occurs when an antigen is mixed with its corresponding antibody.

Erythrocytes

Red blood cells responsible for carrying oxygen and carbon dioxide throughout the body.

Universal Donors

Refers to individuals with O-negative blood type who can donate blood to recipients of all blood types without causing adverse reactions.