Use the comparative balance sheet for On Your Mark in Figure 19–7 to answer the following questions.

1. Which asset account has the larger percentage of increase in the two years? Larger decrease?

2. Which liability account has the larger percentage increase in the two years?

3. Did the overall value (total assets) of the corporation increase or decrease in the two years? What is the dollar amount? What is the percentage?

4. What is the percentage increase in retained earnings in the two years?

5. What conclusions might you draw based on the change in Accounts Receivable? Accounts Payable?

6. Can you provide a possible explanation for the difference in the balance of the Prepaid Insurance account?

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On Your Mark Athletic Wear Comparative Balance Sheet December 31, Current Year and Previous Year Current Year Previous Year $ 15,179.00 $ 10,135.28 10,404.00 8,220.00 81,385.00 84,921.00 1,839.00 1,587.00 1,375.00 0.00 19,831.00 12,462.00 9,825.00 5,854.00 5,200.00 3,500.00 $ 145,038.00 $ 126,679.28 $ 13,850.00 $ 28,113.14 155.00 140.00 640.00 685.00 80.00 72.00 248.00 241.00 58.00 56.35 18.36 16.50 114.73 103.10 2,428.00 2,481.00 $ 17,592.09 $ 31,908.09 $ 75,000.00 52,445.91 $ 75,000.00 19,771.19 $ 94,771.19 $ 126,679.28 $ 127,445.91 $ 145,038.00 Assets Cash in Bank Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Delivery Equipment Office Equipment Store Equipment Total Assets Liabilities Accounts Payable Fed. Corp. Inc. Tax Payable Employees' Fed. Inc. Tax Pay. Employees' State Inc. Tax Pay. Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Pay. State Unemployment Tax Pay. Sales Tax Payable Total Liabilities Stockholders' Equity Capital Stock Retained Earnings Total Stockholders' Equity Total Liab. and Stockhidrs' Equity Increase (Decrease) Current over Previous Dollars Percent $ 5,043.72 2,184.00 (3,536.00) 252.00 1,375.00 7,369.00 3,971.00 1,700.00 $ 18,358.72 $ (14,263.14) 15.00 (45.00) 8.00 7.00 1.65 1.86 11.63 (53.00) $ (14,316.00) $ 0.00 32,674.72 $ 32,674.72 $ 18,358.72 49.76 % 26.57 (4.16) 15.88 - 59.13 67.83 48.57 14.49 % (50.73)% 10.71 6.57 11.11 2.90 2.93 11.27 11.14 2.14 (44.87)% 0.00 % 165.26 34.48 % 14.49 %