GANIBO, SHEREEN GRACE M.
A1A - BSA
Level 1
Chapter 15 - Section I - Exercise 27
A. Use the following financial information to prepare a balance sheet with vertical analysis as of
June 30, 2002, for Northern Industries, Inc.: cash, $44,300; accounts receivable, $127,600;
merchandise inventory, $88,100; prepaid maintenance, $4,100; office supplies, $4,000; land,
$154,000; building, $237,000; fixtures, $21,400; vehicles, $64,000; computers, $13,000; goodwill,
$20,000; investments, $32,000; accounts payable, $55,700; salaries payable, $23,200; notes
payable ( 6 - month), $38,000; mortgage payable, $91,300; debenture bonds, $165,000; common
stock, $350,000; and retained earnings, $86,300.
Note: Round each answer to the nearest tenth percent. Use Excel's Round function and round
your decimal results to 3 places in order to round the percents to tenths.
Northern Industries, Inc.
Balance Sheet
June 30, 2002
Assets
Current Assets
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Maintenance
Office Supplies
Total Current Assets
Property, Plant and Equipment
Land
Buildings
Fixtures
Vehicles
Computers
Total Property, Plant and Equiment
Investments and Other Assets
Investments
Goodwill
Total Assets
Liabilities and Owner's and Equity
Current Liabilities
Accounts Payable
Salaries Payable
Notes Payable
Total Current Liabilities
Long - Term Liabilities
Mortgage Payable
Debenture Bonds
Total Long - Term Liabilities
Total Liabilities
Owner's Equity
Common Stock
Retained Earnings
Total Owner's Equity
Total Liabilities and Owner's Equity
b. The following financial information is for Northern Industries as of June 30, 2003: cash, $40,200;
accounts receivable, $131,400; merchandise inventory, $92,200; prepaid maintenance, $3,700;
office supplies, $6,200; land, $154,000; building, $231,700; fixtures, $23,900; vehicles, $55,100;
computers, $16,800; goodwill, $22,000; investments, $36,400; accounts payable, $51,800; salaries
payable, $25,100; notes payable ( 6 - month), $19,000; mortgage payable, $88,900; debenture
bonds, $165,000; common stock, $350,000; and retained earnings, $113,800.
Prepare a comparative balance sheet with horizontal analysis for 2002 and 2003.
Northern Industries, Inc.
Balance Sheet
June 30, 2002 and 2003
Assets 2003 2002
Current Assets
Cash $40,200.00 $44,300.00
Accounts Receivable 131,400.00 127,600.00
Merchandise Inventory 92,200.00 88,100.00
Prepaid Maintenance 3,700.00 4,100.00
Office Supplies 6,200.00 4,000.00
Total Current Assets $273,700.00 $268,100.00
Property, Plant and Equipment
Land 154,000.00 154,000.00
Buildings 231,700.00 237,000.00
Fixtures 23,900.00 21,400.00
Vehicles 55,100.00 64,000.00
Computers 16,800.00 13,000.00
Total Property, Plant and Equiment $481,500.00 $489,400.00
Investments and Other Assets
Investments 36,400.00 32,000.00
Goodwill 22,000.00 20,000.00
Total Assets $813,600.00 $809,500.00
Liabilities and Owner's and Equity
Current Liabilities
Accounts Payable 51,800.00 55,700.00
Salaries Payable 25,100.00 23,200.00
Notes Payable 19,000.00 38,000.00
Total Current Liabilities $95,900.00 $116,900.00
Long - Term Liabilities
Mortgage Payable 88,900.00 91,300.00
Debenture Bonds 165,000.00 165,000.00
Total Long - Term Liabilities $253,900.00 $256,300.00
Total Liabilities $349,800.00 $373,200.00
Owner's Equity
Common Stock 350,000.00 350,000.00
Retained Earnings 113,800.00 86,300.00
Total Owner's Equity $463,800.00 $436,300.00
Total Liabilities and Owner's Equity $813,600.00 $809,500.00
Percent
$44,300.00 5.50%
127,600.00 15.80%
88,100.00 10.90%
4,100.00 0.50%
4,000.00 0.49%
$268,100.00 33.2%
154,000.00 19.0%
237,000.00 29.3%
21,400.00 2.6%
64,000.00 7.9%
13,000.00 1.6%
$489,400.00 60.4%
32,000.00 4.0%
20,000.00 2.5%
$809,500.00 100%
55,700.00 6.9%
23,200.00 2.9%
38,000.00 4.7%
$116,900.00 14.5%
91,300.00 11.3%
165,000.00 20.4%
$256,300.00 31.7%
$373,200.00 46.1%
350,000.00 43.2%
86,300.00 10.7%
$436,300.00 53.9%
$809,500.00 100.0%
Increase / Decrease
Amount Percent
-$4,100.00 -9.3%
$3,800.00 3.0%
$4,100.00 4.7%
-$400.00 -9.8%
$2,200.00 55.0%
$5,600.00 2.1%
$0.00 0.0%
-$5,300.00 -2.2%
$2,500.00 11.7%
-$8,900.00 -13.9%
$3,800.00 29.2%
-$7,900.00 -1.6%
$4,400.00 13.8%
$2,000.00 10.0%
$4,100.00 0.5%
-$3,900.00 -7.0%
$1,900.00 8.2%
-$19,000.00 -50.0%
-$21,000.00 -18.0%
-$2,400.00 -2.6%
$0.00 0.0%
-$2,400.00 -0.9%
-$23,400.00 -6.3%
$0.00 0.0%
$27,500.00 31.9%
$27,500.00 6.3%
$4,100.00 0.5%
