Financial statements for Bernard Company follow.

Required
Prepare a horizontal analysis of both the balance sheet and income statement.

Transcribed Image Text:

BERNARD COMPANY Balance Sheets As of December 31 2012 2011 Assets Current assets $ 12,000 6,000 $ 16,000 20,000 Cash Marketable securities Accounts receivable (net) Inventories Prepaid items 54,000 46,000 135,000 143,000 25,000 10,000 Total current assets Investments 217,000 20,000 255,000 24,000 250,000 27,000 Plant (net) Land 270,000 29,000 Total assets $576,000 $516,000 Liabilities and Stockholders' Equity Liabilities Current liabilities $ 17,000 113,800 21,000 $ 6,000 Notes payable Accounts payable Salaries payable 100,000 15,000 Total current liabilities 151,800 121,000 Noncurrent liabilities Bonds payable Other 100,000 32,000 100,000 27,000 Total noncurrent liabilities 132,000 127,000 Total liabilities 283,800 248,000 Stockholders' equity Preferred stock, (par value S10, 4% cumulative, non-participating; 8,000 shares authorized and issued) Common stock (No par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 80,000 80,000 80,000 132,200 80,000 108,000 292,200 $576,000 268,000 S516,000 BERNARD COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2012 2011 Revenues Sales (net) Other revenues $230,000 8,000 $210,000 5,000 Total revenues 238,000 215,000 continued