Prepare a Horizontal Analysis by Computing the Amounts and Percentage

question 86

Essay

Prepare a horizontal analysis by computing the amounts and percentage changes for the following balance sheet items; place your answers in the blanks provided.
$\begin{array}{c}\begin{array}{|l|}\hline \\\hline\text{Assets}\\\hline\text{Curent assets}\\\hline\text{Property, plant, and equipment}\\\hline\text{Total assets}\\\hline\\\hline\text{Liabilities and Stocklıollers' Equity}\\\hline\text{Liabilities}\\\hline\text{Stockholders' equity}\\\hline\text{Total liabilities and stockholders equity}\\\hline\end{array}\begin{array}{l|}\hline \text { Year } 2\\\hline \\\hline \$6,500 \\\hline 22,000 \\\hline \$28,500 \\\hline \\\hline \\\hline \$5,500 \\\hline 23,000 \\\hline 228,500 \\\hline\end{array}\begin{array}{l|l|l|}\hline \text { Year 1 } & \text { Amount } & \text { Percentage } \\\hline & & \\\hline \$ 5,000 & & \\\hline 25,000 & & \\\hline \$ 30,000 & & \\\hline & & \\\hline & & \\\hline \$10,000& & \\\hline 20,000 & & \\\hline \$ 30,000 & & \\\hline\end{array}\end{array}$

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Definitions:

Liquidation

The process of closing a business, selling its assets, and using the proceeds to pay creditors and shareholders.

Preliminary Distribution

An initial allocation or dispersion of assets or dividends before the final calculation or decision has been made.

Partnership Assets

All forms of property, including tangible and intangible items, owned by a partnership entity and used in the operation of its business.

Solvent Partner

A partner in a business who has the ability to pay all their debts.