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:

Single Factor Explanations

The attribution of a phenomenon or condition to a single cause, often oversimplifying complex issues.

Scientific Inquiry

The systematic investigation of scientific questions through experimentation, observation, and deduction to build a body of knowledge about the natural world.

Ultimate Goal

The final or most important aim or objective one is attempting to achieve.

Socioeconomic Spectrum

A range that categorizes individuals or groups based on their economic and social position in relation to others, often measured by factors like income, education, and occupation.