Using horizontal analysis, show the percentage change for each balance sheet item using 2014 as a base year.

Using horizontal analysis, show the percentage change for each balance sheet item using 2014 as a base year.

The
comparative balance sheet of Nathan Company appears below:

NATHAN COMPANY

Comparative Balance Sheet

December 31,

———————————————————————————————————————————

Assets 2015 2014

Current assets …………………………………………………………………………….. $
420 $333

Plant assets ………………………………………………………………………………… 780 567

Total assets ………………………………………………………………………………… $1,200 $900

Liabilities and stockholders’ equity

Current liabilities ………………………………………………………………………….. $
168 $144

Long-term debt …………………………………………………………………………… 300 162

Common stock …………………………………………………………………………… 432 306

Retained earnings ……………………………………………………………………….. 300 288

Total
liabilities and stockholders’ equity …………………………………….. $1,200 $900

Instructions

(a) Using horizontal analysis, show the
percentage change for each balance sheet item using 2014 as a base year.

(b) Using vertical analysis, prepare a common
size comparative balance sheet.


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