Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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3. Complete the below table to calculate the balance sheet data in trend percents with 2017 as base year. (Round your percentage answers to 2 decimal places.)
KORBIN COMPANY
Balance Sheet Data in Trend Percents
December 31, 2019, 2018 and 2017
2019
2018
2017
Assets
Current assets
%
%
100.00
%
Long-term investments
100.00
Plant assets, net
100.00
Total assets
%
%
100.00
%
Liabilities and Equity
Current liabilities
%
%
100.00
%
Common stock
100.00
Other paid-in capital
100.00
Retained earnings
100.00
Total liabilities and equity
%
%
100.00
%
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Summary financial information for Gandaulf Company is as follows.
Compute the amount and percentage changes in 2022 using horizontal analysis, assuming 2024 is the base year. (Enter negative
amounts and percentages using either a negative sign preceding the number e.g. -45,-45% or parentheses e.g. (45), (45%). Round percentages to
2 decimal places, e.g. 1.25%.)
Current Assets
Dec. 31, 2022 Dec. 31, 2024
$191,100
$210,000
$
Plant Assets
1,058,600
790,000
Total assets
$1,249,700
$1,000,000
$
Increase (Decrease) in 2022
Amount
Percent
%
%
%
Bauman Company's total current assets, total current liabilities, and inventory for each of the past4 years follow:Item 2016 2017 2018 2019Total current assets $17,230 $21,720 $22,390 $26,190Total current liabilities 8,860 12,370 13,560 17,120Inventory 5,650 6,930 7,340 7,560a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures ofliquidity.b. Comment on the firm's liquidity over the 2016-2019 period.c. If you were told that Bauman Company's inventory turnover for each year in the - period and the industryaverages were as follows, would this information support or conflict with your evaluation in part (b).? Why?2016 2019Item 2016 2017 2018 2019Bauman Company 6.3 6.8 7.0 6.4Industry Average 11.4 12.0 11.6 11.8
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