The horizontal analysis of the comparative balance sheet of the company shows a 37.4% increase...
90.2K
Verified Solution
Link Copied!
Question
Accounting
The horizontal analysis of the comparative balance sheet of the company shows a 37.4% increase in total assets, 39.5% increase in total liabilities and 9.9% increase in total stockholders' equity of the company. Current assets increased 40% when compared to the previous year but this increase mostly offset by 9.9% increase in current liabilities. Accounts receivable increased 43.59% indicating deteriorated collection efforts and as a result the allowance for doubtful debts also increased to 72.4%. The investment in trading and available for sale securities increased 21.2% and 26.74% respectively. The 9.9% increase in current liabilities is mostly related to payroll liabilities of the company. There is a decrease of 18.69% in long-term debt of the company. The overall performance of the company improved except receivables collection efforts as there is 85.4% increase in retained earnings of the company
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
