Complete the Horizontal Analysis of Soopy's Used Cars

question 66

Essay

Complete the horizontal analysis of Soopy's Used Cars.(Round all percentages to the nearest tenth of a percent.)
$\begin{array} { l r r r r } & \underline { 2013 } & \underline { 2012 } & \underline { \text { Amount } } & \underline { \text { Percent } } \\&&&\underline { \text { of Change} } &\underline { \text { of Change }} \\\text { Current Assets } & \$ 75,000 & \$ 60,000 &\\\text { Plant and Equipment } & \underline { 225,000 } & \underline { 200,000 } & & \\\text { Total Assets } & \underline { \underline { \$ 300,000 } } & \underline { \underline { \$ 260,000 } } & & \\\text { Current Liabilities } & \$ 30,000 & \$ 35,000 & & \\\text { Long-term Liabilities } & 80,000 & 70,000 & & \\\text { Common Stack } & 100,000 & 100,000 & & \\\text { Retained Earnings } & \underline { 90,000 } & \underline { 55,000 } & & \\\text { Tota1 Liabilities and } & & & & \\\text { Stockholders' Equity } & \underline { \$ 300,000 } & \underline { \$ 260,000 } &\end{array}$

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Definitions:

"As Is"

The term "as is" denotes a condition of sale in which the buyer accepts an item in its current state, with all faults and without warranty, implying the buyer cannot hold the seller responsible for any defects.

Excellent Mechanical Condition

Refers to a state where mechanical systems and components are functioning at their best with no need for repairs.

Merchantability

A warranty that goods sold will meet reasonable expectations of quality and functionality as implied in a sale.

Implied Warranty of Merchantability

A legal presumption that goods sold by a merchant are fit for the general purpose for which they are sold and meet the standards of quality and performance that are reasonable to expect.