Prepare a horizontal analysis of Sports Unlimited's 2015 balance sheet using 2014 as the base year. (Round your percentage answers to 1 decimal place.)
| SPORTS UNLIMITED |
| Balance Sheet |
| For the Years Ended December 31, 2015 and 2014 |
| Year |
Increase (Decrease) |
| 2015 |
2014 |
Amount |
% |
| Assets |
| Current assets: |
| Cash |
$126,000 |
$86,000 |
| Accounts receivable |
68,400 |
35,500 |
| Inventory |
70,800 |
93,500 |
| Prepaid rent |
9,000 |
4,500 |
| Long-term assets: |
| Investment in bonds |
77,400 |
0 |
| Land |
159,000 |
168,000 |
| Equipment |
142,800 |
139,500 |
| Less: Accumulated depreciation |
(53,400) |
(27,000) |
| Total assets |
$600,000 |
$500,000 |
| Liabilities and Stockholders' Equity |
| Current liabilities: |
| Accounts payable |
$36,600 |
$53,500 |
| Interest payable |
24,000 |
12,000 |
| Income tax payable |
16,800 |
13,500 |
| Long-term liabilities: |
| Notes payable |
178,800 |
124,500 |
| Stockholders' equity: |
| Common stock |
234,000 |
234,000 |
| Retained earnings |
109,800 |
62,500 |
| Total liabilities and stockholders' equity |
$600,000 |
$500,000 |