Data for Gobell, Inc $\begin{array}{llcc} &\text {2019 } & \text {2018 } \\\end{array}$

question 51

Essay

Data for Gobell, Inc. follow:
Gobell, Inc.
Comparative Balance Sheet
December 31,2019 and 2018

$\begin{array}{llcc} &\text {2019 } & \text {2018 } \\\end{array}$
Assets
Current Assets:
$$\begin{array} { l l l } \text { Cash } & \$ 121,000 & \$ 100,000 \\\text { Accounts Receivables, Net } & 117,000 & 125,000 \\\text { Merchandise Inventory } & 70,000 & \$ 85,000 \\\text { Total Assets } & \$ 308 , 000 & \$ 310,000\end{array}$$ Liabilities
$$\begin{array} { l l l } \text { Total Current Liabilities } & \$ 63,500 & \$ 50,000 \\\text { Long-term Liabilities } & \underline { 100,000 } & \underline { 100,000 } \\\text { Total Liabilities } & \underline { 163,500 } & \underline { 150,000 }\end{array}$$ Stockholders' Equity
$\begin{array}{lll}\text { Retained Earnings } & 94,500 & 110,000 \\\text { Common Stockholders' Equity } &\underline{50,000}& \underline{50,000} \\\text { Total Liabilities and Stockholders' Equity } & \underline{\$ 308,000} & \underline{\$ 310,000}\end{array}$
Prepare a horizontal analysis of the comparative balance sheet of Gobell, Inc. (Round to one decimal place.)

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Definitions:

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Cash-Generating Unit

The minimal distinguishable collection of assets that creates cash inflows primarily independent from the cash inflows of other assets or asset collections.

Impairment Loss

The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.

Net Carrying Amount

The value of an asset recorded in a company's financial statement, which is the original cost minus accumulated depreciation and impairment losses.