Question

Here is financial information for Larkspur, Inc. December 31, 2022 December 31, 2021 Current assets $108,600 $ 94,500 Plant assets (net) 404,500 352,600 Current liabilities 103,500 67,600 Long-term liabilities 124,600 94,500 Common stock, $1 par 132,600 117,600 Retained earnings 152,400 167,400 Prepare a schedule showing a horizontal analysis for 2022, using 2021 as the base year. (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. 12.1%.)

Answer 1

Answer:

                                      2022      2021       Amount     Percentage

                                        [A]           [B]       [C = A – B]      [D = C/B]

ASSETS

Current Assets         $108,600  $94,500     $14,100          14.9%

Plant Assets (net)     $404,500 $352,600   $51,900         14.7%

Total Assets             $513,100   $447,100     $66,000        14.8%

LIABILITIES

Current Liabilities    $103,500  $67,600      $35,900          53.1%

Long Term Liabilities $124,600 $94,500    $30,100            31.9%

Total Liabilities        $228,100   $162,100     $66,000          40.7%

STOCKHOLDER's EQUITY

Common Stock $1 par $132,600  $117,600  $15,000       12.8%

Retained Earnings         $152,400  $167,400 $(15,000)     -9.0%

Total S.H. 's Equity        $285,000 $285,000     -              $0.0%

Total Liabilities &        $513,100   $447,100  $66,000      14.8%

Stockholder's Equity