Question - Presented below is a balance sheet for the last two years:
|
|
2016
|
2015
|
|
Cash
|
$118,000
|
$115,000
|
|
Accounts receivable
|
$98,000
|
$ 77,000
|
|
Short-term investments
|
$60,000
|
$65,000
|
|
Current assets
|
$276,000
|
$257,000
|
|
Equipment, net of depreciation
|
$220,000
|
$205,000
|
|
Land
|
$75,000
|
$75,000
|
|
Total assets
|
$571,000
|
$537,000
|
|
|
|
|
|
Accounts payable
|
$72,000
|
$96,000
|
|
Wages payable
|
$4,000
|
$3,000
|
|
Short-term revolving bank loan
|
$85,000
|
$50,000
|
|
Current liabilities
|
$161,000
|
$149,000
|
|
Long-term debt
|
$128,000
|
$132,000
|
|
Total liabilities
|
$289,000
|
$281,000
|
|
Common stock
|
$100,000
|
$100,000
|
Prepare a horizontal analysis. Display percentages to 3 decimal places (.654 = 65.4%). Discuss any line items from the balance sheet that may warrant further investigation from management.