Use the Following Information to Do a Horizontal Analysis of Hewitt

question 133

Essay

Use the following information to do a horizontal analysis of Hewitt Corporation's balance sheet for the end of the current and prior years.Fill in the table.
$\begin{array} { | l | l | l | l | l | } \hline \text { Account } & \text { Current } & \text { Prior } & \begin{array} { l } \text { Dollar } \\\text { Change }\end{array} & \text { \% Change } \\\hline \text { Current assets } & \$ 119,000 & \$ 85,000 & & \\\hline \text { Accounts receivable } & \$ 99,000 & \$ 110,000 & & \\\hline \text { Merchandise inventory } & \$ 70,775 & \$ 74,500 & & \\\hline & & & & \\\hline \text { Current liabilities } & \$ 47,500 & \$ 38,000 & & \\\hline \text { Long-term liabilities } & \$ 63,000 & \$ 60,000 & & \\\hline \text { Common stock } & \$ 45,000 & \$ 45,000 & & \\\hline \text { Retained earnings } & \$ 133,275 & \$ 126,500 & & \\\hline\end{array}$

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Definitions:

Entire Debt

The total amount owed by a debtor, encompassing all outstanding obligations, not just a portion or installment.

Foreclosure

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments, typically by forcing the sale of the asset used as the collateral for the loan.

Default Judgment

A binding judgment in favor of either party based on some failure to take action by the other party, typically when the defendant does not respond to a summons or fail to appear in court.

Mortgage

A contractual arrangement where a bank or lender provides funds at an interest rate, securing the loan by assuming ownership of the borrower's property, which reverts back to the borrower once the loan is fully repaid.