Question

Comparative data from the statement of financial position of Benton Ltd. are shown below. 2018 2017 2016 Current assets $1,524,000 $1,182,000 $1,218,000 Property, plant, and equipment 3,155,000 2,786,000 2,843,000 Goodwill 83,000 93,000 -0-     Total assets $4,762,000 $4,061,000 $4,061,000

Using horizontal analysis, calculate the percentage of the base-year amount, using 2016 as the base year. (Round answers to 1 decimal place, e.g. 52.7%.) 2018 2017 2016 Current assets % % % Property, plant, and equipment % % %      Total assets % % %

Using vertical analysis, calculate the percentage of the base amount for each year. (Round percentages to 1 decimal places, e.g. 52.7%.) 2018 2017 2016 Amount Percentage Amount Percentage Amount Percentage Current assets $ % $ % $ % Property, plant, and equipment % % % Goodwill % % % Total assets $ % $ % $ %

Answer 1

Answers

[1]

	2018	2017	2016
Current Assets	125.1%	97.0%	100.0%
PPE	111.0%	98.0%	100.0%
Goodwill	0.0%	0.0%	0.0%
Total Assets	117.3%	100.0%	100.0%

--Working

	2018	2017	2016
Current Assets	=1524000/1218000	=1182000/1218000	=1218000/1218000
PPE	=3155000/2843000	=2786000/2843000	=2843000/2843000
Goodwill	0	0	0
Total Assets	=4762000/4061000	=4061000/4061000	=4061000/4061000

[2]

	2018		2017		2016
Current Assets	$1,524,000	32.0%	$1,182,000	29.1%	$1,218,000	30.0%
PPE	$3,155,000	66.3%	$2,786,000	68.6%	$2,843,000	70.0%
Goodwill	$83,000	1.7%	$93,000	2.3%	$0	0.0%
Total Assets	$4,762,000	100.0%	$4,061,000	100.0%	$4,061,000	100.0%