Perform a Horizontal Analysis on the Following Information Providing Both

question 95

Essay

Perform a horizontal analysis on the following information providing both the dollar amount and percentage change:
$\begin{array}{lrr}&2013&2012\\\text { Cash } & \$ 500,000 & \$ 200,000 \\\text { Accounts receivable } & 900,000 & 800,000 \\\text { Inventory } & 700,000 & 500,000 \\\text { Long-term assets } & 2.200 .000 & 2.500 .000\\\text { Total assets }&\$4,300,000&\$4,000,000\\\end{array}$

---

Definitions:

Interest Calculation

The process of determining the interest charge on a loan or financial investment, based on the principal amount, rate, and time.

Maturity Date

The specific date on which the principal amount of a debt instrument, such as a bond or loan, becomes due and payable.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total accounts receivable balance to reflect accounts that are expected not to be collected.

Bad Debt Expense

An expense recognized when receivables are no longer collectible due to customer default.