Bluffton Company's stock is quoted at $16 per share at December 31, 2019 and 2018. Bluffton's Financial statements follow:

Required
Prepare a horizontal analysis of the balance sheet and income statement for 2019 and 2018. Round percentages to one decimal point.

Transcribed Image Text:

BLUFFTON COMPANY Balance Sheets As of December 31 (In thousands) 2019 2018 Assets Current assets $6,000 4,000 44,000 60,000 1,000 115,000 105,000 1,000 2,000 4,000 3,000 $230,000 Cash Marketable securitles at cost which approximates market Accounts recelvable, net of allowance for doubtful accounts Inventories, lower of cost or market Prepald expenses $ 8,000 5,000 47,000 50,000 2,000 112,000 100,000 1,000 3,000 2,000 2,000 $220,000 Total current assets Property, plant, and equlpment, net of accumulated depreclatlon Investments Long-term recelvables Goodwill and patents, net of accumulated amortization Other assets Total assets Liabllitles and Stockholders' Equity Current llablitles Notes payable Accounts payable Accrued expenses Income taxes payable Payments due withln one year 3,000 12,000 9,000 1,000 3,000 28,000 50,000 30,000 5,000 113,000 $5,000 16,000 11,000 1,000 2,000 35,000 60,000 27,000 4,000 126,000 Total current lablities Long-term debt Deferred Income taxes Other llablitles Total llablitles Stockholders' equity 5% cumulative preferred stock, par value $100 per share; $100 llquldating value; authorized 250,000 shares lssued and outstanding 200,000 shares and 5,000,000 shares Issued and outstanding Total stockholders' equity 20,000 20,000 Common stock, no par; 10,000,000 shares authorized 40,000 47,000 107,000 $220,000 40,000 44,000 104,000 $230,000 Retalned earnings Total Ilablitles and stockholders equity BLUFFTON COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 (In thousands) 2019 2018 $180,000 $150,000 Net sales Expenses Cost of goods sold Sellilng, general, and administrative expenses Other 147,000 20,000 2,000 169,000 11,000 5,000 6,000 40,000 3,000 1,000 $42,000 120,000 18,000 2,000 140,000 10,000 4,000 6,000 38,000 3,000 1,000 $40,000 Total expenses Income before Income taxes Income taxes Net Income Retalned earnings at beginning of period Less: DIvldends on common stock Dividends on preferred stock Retalned earnings at end of period