Transcribed Image Text
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$315,600$%