Perform a horizontal analysis of this balance sheet and identify any accounts that may be questionable. Take into account technology industry trends when performing the analysis
|
Given data: |
|
|
|
|
2007 |
2008 |
2009 |
2010 |
Cash |
$1,000 |
$1,200 |
$1,400 |
$1,500 |
Accounts receivable |
$250 |
$375 |
$600 |
$900 |
Inventory |
$600 |
$700 |
$825 |
$975 |
PP&E (net) |
$1,500 |
$1,700 |
$1,800 |
$1,950 |
Notes receivable |
$500 |
$500 |
$500 |
$500 |
Total asset |
$3,850 |
$4,475 |
$5,125 |
$5,825 |
Accounts payable |
$700 |
$900 |
$1,000 |
$1,100 |
Other current liabilities |
$200 |
$300 |
$350 |
$425 |
Notes payable |
$1,200 |
$1,400 |
$1,500 |
$1,750 |
Total liabilities |
$2,100 |
$2,600 |
$2,850 |
$3,275 |
Stock outstanding |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
Retained earning |
$750 |
$875 |
$1,275 |
$1,550 |
Total shareholders' equity |
$1,750 |
$1,875 |
$2,275 |
$2,550 |
Total liabilities and shareholders' equity |
$3,850 |
$4,475 |
$5,125 |
$5,825 |