This concludes the accounting for Lydon’s Yard Care, Inc., that we began in Chapter 1. For this exercise, refer to the comparative balance sheet that was presented in the Continuing Exercise in Chapter 11.

Requirements

1. Prepare a horizontal analysis of the balance sheet for Lydon’s Yard Care, Inc. Round percentages to one-tenth of a percent

2. Prepare a vertical analysis of the balance sheet for Lydon’s Yard Care, Inc. Round percentages to one-tenth of a percent.

Transcribed Image Text:

Lydon's Yard Care, Inc. Comparative Balance Sheet December 31, 2013 and 2012 2013 2012 ASSETS $18,600 200 Cash $13,461 Accounts Receivable Lawn Supplies Equipment (Less Accumulated Depreciation) Total Assets 2,520 189 6,090 150 1,200 (1,260) $21,000 (150) $20,000 LIABILITIES $ 273 $ 1,200 10,000 Accounts Payable Notes Payable (long-term) STOCKHOLDERS' EQUITY 4,410 16,317 Common Stock 1,500 Retained Earnings 7,300 Total Liabilities and Stockholders' Equity $21,000 $20,000