Prepare a horizontal analysis
Presented below is a comparative balance sheet for Bogues Corporation for 20X7 and 20X6. Prepare a horizontal analysis of Bogues Corporation's balance sheet.
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Bogues Corporation
Comparative Balance Sheet
December 31, 20X7 and 20X6
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20X7
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20X6
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Assets
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Current assets
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Cash
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$ 31,000
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$ 20,000
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Accounts receivable (net)
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35,000
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25,000
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Merchandise inventory
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45,000
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40,000
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Prepaid expenses
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20,000
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5,000
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Total current assets
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131,000
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90,000
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Plant assets
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Land
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$ 40,000
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$ 50,000
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Equipment (net)
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100,000
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90,000
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Total assets
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$271,000
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$230,000
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Liabilities
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Current liabilities
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Accounts payable
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$ 40,000
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$ 35,000
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Salary payable
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15,000
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10,000
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Total current liabilities
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55,000
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45,000
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Stockholders' equity
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Common stock
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116,000
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100,000
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Retained earnings
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100,000
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85,000
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Total stockholders' equity
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216,000
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185,000
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Total liabilities & stockholders' equity
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$271,000
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$230,000
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