Acc557 Financial Accounting: E14-3 The comparative condensed balance sheets of Garcia Corporation

Acc557 Financial Accounting

Exercise 14-3
The comparative condensed balance sheets of Garcia Corporation are presented below:
GARCIA CORPORATION
Comparative Condensed Balance Sheets
December 31
2014 2013
Assets
Current assets 76,000 80,000
Property, plant, and equipment (net) 100,000 90,000
Intangibles 24,000 40,000
Total assets 200,000 210,000
Liabilities and stockholders' equity
Current liabilities 40,000 48,000
Long-term liabilities 140,000 150,000
Stockholders' equity 20,000 12,000
Total liabilities and stockholders' equity 200,000 210,000

Instructions:
(a) Prepare a horizontal analysis of the balance sheet data for Garcia Corporation using 2013 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. 12.3%.)
(b) Prepare a vertical analysis of the balance sheet data for Garcia Corporation in columnar form for 2014. (Round percentages to 0 decimal places, e.g. 12%.)
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