EXERCISES
Ex. 179
Selected financial information for Bradley Corporation is presented below.
December 31, 2014December 31, 2013
Current assets$ 60,000$ 50,000
Non-current liabilities100,00080,000
Retained earnings115,000100,000
Instructions
Prepare a schedule showing a horizontal analysis for 2014 using 2013 as the base year.
Ex. 180
Comparative information taken from the Wells Company financial statements is shown below:
2014 2013
(a)Notes receivable$ 20,000$ -0-
(b)Accounts receivable182,000140,000
(c)Retained earnings30,000(40,000)
(d)Income taxes payable44,00020,000
(e)Sales960,000750,000
(f)Operating expenses170,000200,000
Instructions
Using horizontal analysis, show the percentage change from 2013 to 2014 with 2013 as the base year.
Ex. 181
Flynn Corporation had net income of $6,000,000 in 2012. Using 2012 as the base year, net income decreased by 70% in 2013 and increased by 140% in 2014.
Instructions
Compute the net income reported by Flynn Corporation for 2013 and 2014.