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Necco Company Balance Sheet As at December 31 |
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2007 |
2006 |
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Assets |
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Current assets |
$ 130,000 |
$ 105,000 |
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Equipment |
300,000 |
250,000 |
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Total assets |
$ 430,000 |
$ 355,000 |
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Liabilities |
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Current liabilities |
80,000 |
59,000 |
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Long term liabilities |
150,000 |
105,000 |
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Total liabilities |
230,000 |
164,000 |
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Stockholders’ equity |
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|
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Common stock $ 1 par |
100,000 |
80,000 |
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Retained earnings |
100,000 |
111,000 |
|
200,000 |
191,000 |
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Total liabilities and stockholders’ equity |
$ 430,000 |
$ 355,000 |
Instructions.
(a) Prepare a schedule showing a horizontal analysis for 2007 using 2006 as the base year.
(b) Prepare a schedule showing a vertical analysis for both years.