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:

Common Property Resource

A type of resource for which ownership or access rights are shared among individuals or a community, leading to potential issues of overuse or depletion without effective management.

Lighthouse

A tower equipped with a powerful light used to guide or warn ships at sea.

Public Good

A Public Good is a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Rival Good

A rival good is a type of product or resource that cannot be consumed by multiple individuals at the same time without diminishing its availability to others.