AC 302 CHAPTER 24 PROBLEM QUESTION 4

AC 302 CHAPTER 24 PROBLEM QUESTION 4
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
P 24-4 (Horizontal and Vertical Analysis) Presented below are comparative balance sheets for the Gilmour Company.						
						
	GILMOUR COMPANY					
	Comparative Balance Sheet					
	December 31, 2013 and 2012					
				2013	2012	
	Assets					
	Cash			$180,000 	$275,000 	
	Accounts receivable (net)			220,000 	155,000 	
	Short-term investments			270,000 	150,000 	
	Inventories			1,060,000 	980,000 	
	Prepaid expense			25,000 	25,000 	
	Fixed assets			2,585,000 	1,950,000 	
	Accumulated depreciation			(1,000,000)	(750,000)	
				$3,340,000 	$2,785,000 	
						
	Liabilities and Stockholders' Equity					
	Accounts payable			$50,000 	$75,000 	
	Accrued expenses			170,000 	200,000 	
	Bonds payable			450,000 	190,000 	
	Capital stock			2,100,000 	1,770,000 	
	Retained earnings			570,000 	550,000 	
				$3,340,000 	$2,785,000 	
						
Instructions: (Round to two decimal places.)						
"(a) Prepare a comparative balance sheet of Gilmour Company showing the percent each item is of the
     total assets or total liabilities and stockholders' equity."						
						
						
GILMOUR COMPANY						
Comparative Balance Sheet						
December 31, 2013 and 2012						
		December 31				
		2013		2012		
Assets						
Cash		Amount	Formula	Amount	Formula	
Accounts receivable (net)		Amount	Formula	Amount	Formula	
Short-term investments		Amount	Formula	Amount	Formula	
Inventories		Amount	Formula	Amount	Formula	
Prepaid expense		Amount	Formula	Amount	Formula	
Fixed assets		Amount	Formula	Amount	Formula	
Accumulated depreciation		Amount	Formula	Amount	Formula	
Total		Formula	Formula	Formula	Formula	
						
Liabilities and Stockholders’ Equity						
Accounts payable		Amount	Formula	Amount	Formula	
Accrued expenses		Amount	Formula	Amount	Formula	
Bonds payable		Amount	Formula	Amount	Formula	
Capital stock		Amount	Formula	Amount	Formula	
Retained earnings		Amount	Formula	Amount	Formula	
Total		Formula	Formula	Formula	Formula	
						
"(b) Prepare a comparative balance sheet of Gilmour Company showing the dollar change and the
     percentage change for each item."						
						
						
GILMOUR COMPANY						
Comparative Balance Sheet						
December 31, 2013 and 2012						
		December 31		Increase or (Decrease)		
Assets		2013	2012	$ Change	% Change	
Cash		Amount	Amount	Formula	Formula	
Accounts receivable (net)		Amount	Amount	Formula	Formula	
Short-term investments		Amount	Amount	Formula	Formula	
Inventories		Amount	Amount	Formula	Formula	
Prepaid expense		Amount	Amount	Formula	Formula	
Fixed assets		Amount	Amount	Formula	Formula	
Accumulated depreciation		Amount	Amount	Formula	Formula	
Total		Formula	Formula	Formula	Formula	
						
Liabilities and Stockholders’ Equity						
Accounts payable		Amount	Amount	Formula	Formula	
Accrued expenses		Amount	Amount	Formula	Formula	
Bonds payable		Amount	Amount	Formula	Formula	
Capital stock		Amount	Amount	Formula	Formula	
Retained earnings		Amount	Amount	Formula	Formula	
Total		Formula	Formula	Formula	Formula	
						
(c) Of what value is the additional information provided in part (a)?						
						
Enter text answer as appropriate.						
						
						
						
						
						
						
						
						
						
						
						
(d) Of what value is the additional information provided in part (b)?						
						
Enter text answer as appropriate.