Question

Suppose the comparative balance sheets of Splish Brothers Inc. are presented here. SPLISH BROTHERS INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,580 $8,770 Property, plant, and equipment (net) 1,810 1,800 Other assets 1,540 1,670 Total assets $12,930 $12,240 Liabilities and Stockholders' Equity Current Liabilities $3,150 $3,320 Long-term liabilities 1,320 1,370 Stockholders’ equity 8,460 7,550 Total liabilities and stockholders' equity $12,930 $12,240 (a) Prepare a horizontal analysis of the balance sheet data for Splish Brothers, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

Answer 1

Comparative Balance Sheet

May 31, 2017 and 2016

Particulars	2017($)	2016($)	Increase or (Decrease) Amount	Increase or (Decrease) Percent
Assets
Current Assets	9580	8770	810*	9.2%
Property, Plant & Equipment	1810	1800	10	0.6%
Other Assets	1540	1670	(130)	(7.8)%
Total Assets	12930	12240	690	5.6%
Liabilities & Stockholder's Equity
Current Liabilities	3150	3320	(170)	(5.1)%
Long Term Liabilities	1320	1370	(50)	(3.6)%
Stockholder's Equity	8460	7550	910	12.0%
Total Liabilities & Stockholder's Equity	12930	12240	690	5.6%

* 9580 - 8770 = 810

(810/8770) * 100 = 9.2%