Following Is a Comparative Balance Sheet for Barking Shark International

question 16

Essay

Following is a comparative balance sheet for Barking Shark International Corporation:
Current assets
Current liabilities
Shareholders' equity
Total liabilities and shareholders'
Required:
a. Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet.
b. Indicate any positive or negative developments from one year to the next.

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Definitions:

Controlling Person

An individual or entity that has the power to direct or influence the management and policies of a company, typically through ownership of a significant portion of voting shares.

Affirmative Defense

A defendant’s response to a plaintiff’s claim in which the defendant attacks the plaintiff’s legal right to bring the action rather than attacking the fact of the claim or making excuses for unlawful behavior. Common

GAAS

Generally Accepted Auditing Standards, which are guidelines that auditors follow when conducting audits on companies' finances.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards for financial reporting.