Question

23-1. Analyze selected changes horizontally

Exercises Exercise 23-1 Objective: To analyze selected changes horizontally Selected items from the G. Calloway Company's financial statements follow 20X2 20X1 (a) Cash (b) Accounts Receivable (c) Current Liabilities (d) Retained Earnings (e) Sales () Cost of Goods Sold (g) Net Income $45,000 $42,000 38,602 31,334 92,565 84,000 44,600 79,500 35,400 26,590 98,560 97,500 53,400 4 99,200 Directions: Calculate the dollar and percent (to the nearest tenth of a percent) changes from 20X1 to 20X2 for each item.

Answer 1

Item	2012	2011	Difference	Percent
Cash	45000	42000	3000	7.14%
Accounts Receivable	35400	38602	(3202)	-8.29%
Current Liabilities	26590	31334	(4744)	-15.14%
Retained Earnings	98560	92565	5995	6.48%
Sales	97500	84000	13500	16.07%
Cost of goods sold	53400	44600	8800	19.73%
Net Income	99200	79500	19700	24.78%

Percent= Difference/Previous Year Amount*100