Ch. 16 Q 1 Complete a horizontal analysis for Brown Company. (Negative answers should be indicated by...

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Finance

Ch. 16 Q 1
Complete a horizontal analysis for Brown Company.(Negative answers should be indicated by a minus sign.Leave no cells blank - be certain to enter "0" wherever required.Round the "percent" answers to the nearest hundredthpercent.)
BROWN COMPANY
Comparative Balance Sheet
December 31, 2016 and 2017
INCREASE (DECREASE)
2017 2016 Amount Percent
Assets
Current assets:
Cash $ 13,950 $ 9,150 $ %
Accounts receivable 19,350 14,400 %
Merchandise inventory 19,650 23,850 %
Prepaid advertising 55,800 46,350 %
Total current assets $ 108,750 $ 93,750 $ %
Plant and equipment:
Building (net) 120,900 127,350 $ %
Land 94,500 94,500 %
Total plant and equipment $ 215,400 $ 221,850 %
Total assets $ 324,150 $ 315,600 $ %
Liabilities
Current liabilities:
Accounts payable $ 133,350 $ 120,900 $ %
Salaries payable 23,850 18,900 %
Total current liabilities $ 157,200 $ 139,800 $ %
Long-term liabilities:
Mortgage note payable 100,350 87,900 %
Total liabilities $ 257,550 $ 227,700 $ %
Owner’s Equity
J. Brown, capital 66,600 87,900 %
Total liabilities and owner’s equity $ 324,150 $ 315,600 $ %

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In this horizontal analysis we are comparing the values in theyear 2017 with 2016Positive See Answer

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Ch. 16 Q 1Complete a horizontal analysis for Brown Company.(Negative answers should be indicated by a minus sign.Leave no cells blank - be certain to enter "0" wherever required.Round the "percent" answers to the nearest hundredthpercent.)BROWN COMPANYComparative Balance SheetDecember 31, 2016 and 2017INCREASE (DECREASE)20172016AmountPercentAssetsCurrent assets:Cash$13,950$9,150$%Accounts receivable19,35014,400%Merchandise inventory19,65023,850%Prepaid advertising55,80046,350%Total current assets$108,750$93,750$%Plant and equipment:Building (net)120,900127,350$%Land94,50094,500%Total plant and equipment$215,400$221,850%Total assets$324,150$315,600$%LiabilitiesCurrent liabilities:Accounts payable$133,350$120,900$%Salaries payable23,85018,900%Total current liabilities$157,200$139,800$%Long-term liabilities:Mortgage note payable100,35087,900%Total liabilities$257,550$227,700$%Owner’s EquityJ. Brown, capital66,60087,900%Total liabilities and owner’s equity$324,150$315,600$%

BROWN COMPANY Comparative Balance Sheet December 31, 2016 and 2017
					INCREASE (DECREASE)
	2017		2016		Amount	Percent
Assets
Current assets:
Cash	$	13,950	$	9,150	$	%
Accounts receivable		19,350		14,400		%
Merchandise inventory		19,650		23,850		%
Prepaid advertising		55,800		46,350		%
Total current assets	$	108,750	$	93,750	$	%
Plant and equipment:
Building (net)		120,900		127,350	$	%
Land		94,500		94,500		%
Total plant and equipment	$	215,400	$	221,850		%
Total assets	$	324,150	$	315,600	$	%
Liabilities
Current liabilities:
Accounts payable	$	133,350	$	120,900	$	%
Salaries payable		23,850		18,900		%
Total current liabilities	$	157,200	$	139,800	$	%
Long-term liabilities:
Mortgage note payable		100,350		87,900		%
Total liabilities	$	257,550	$	227,700	$	%
Owner’s Equity
J. Brown, capital		66,600		87,900		%
Total liabilities and owner’s equity	$	324,150	$	315,600	$	%