The Balance Sheet Data of Randolph Company for Two Recent

question 58

Essay

The balance sheet data of Randolph Company for two recent years appears below:
​ $\begin{array}{|l|r|r|}\hline\text { Assets: } & \text { Year 2 } & \text { Year 1 } \\\hline \text { Current assets } & \$ 445 & \$ 280 \\\hline \text { Plant assets } & 680 & 520 \\\hline \text { Total assets } & \$ 1,125 & \$ 800 \\\hline & & \\\hline \begin{array}{l}\text { Liabilities and stockholders' } \\\text { equity: }\end{array} & \\\hline \text { Current liabilities } & \$ 285 & \$ 120 \\\hline \text { Long-term debt } & 255 & 160 \\\hline \text { Common stock } & 325 & 320 \\\hline \text { Retained earnings } & 260 & 200 \\\hline \text { Total liabilities and } \\\text { stockholders' equity } &\$1,125&\$800\\\hline\end{array}$ ​ (a) Using horizontal analysis, show the percentage change for each bal ance sheet item using Year 1 as a base year.
(b) Using vertical analysis, prepare a comparative balance sheet. Round percentages to one decimal place.

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Definitions:

Alignment Model

A framework used in strategic management to ensure that an organization's strategies, capabilities, and resources are in sync with its goals and environment.

Basic Responsibilities

The fundamental duties or obligations required of an individual, role, or organization, often foundational to operation or governance.

Nonprofit Chief Executives

Individuals at the highest leadership position within nonprofit organizations, responsible for overseeing operations, strategy, and achieving the mission.

Board Of Directors

A group of individuals elected to represent shareholders and oversee the activities and strategic direction of a company or organization.