Use the financial statements for Bluffton Company from Problem 14-17B to perform a vertical analysis (based on total assets, total equities, and sales) of both the balance sheets and income statements for Year 4 and Year 3. Round computations to one decimal point.

Problem 14-17B

Bluffton Company’s stock is quoted at $16 per share at December 31, Year 4 and Year 3. Bluffton’s financial statements follow:

Required

Prepare a horizontal analysis of the balance sheet and income statement for Year 4 and Year 3. Round percentages to one decimal point.

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BLUFFTON COMPANY Balance Sheets As of December 31 (in thousands) Year 4 Year 3 Assets Current assets Cash Marketable securities at cost which approximates market Accounts receivable, net of allowance for doubtful accounts $ 8,000 5,000 $ 6,000 4,000 44,000 47,000 Inventories, lower of cost or market 50,000 2,000 60,000 1,000 Prepaid expenses 112,000 115,000 105,000 1,000 2,000 4,000 3,000 Total current assets Property, plant, and equipment, net of accumulated depreciation Investments Long-term receivables Goodwill and patents, net of accumulated amortization 100,000 1,000 3,000 2,000 2,000 Other assets Total assets $220,000 $230,000 Liabilities and Stockholders' Equity Current liabilities $ 3,000 12,000 $ 5,000 16,000 Notes payable Accounts payable Accrued expenses Income taxes payable Payments due within one year 9,000 1,000 3,000 11,000 1,000 2,000 Total current liabilities 28,000 50,000 35,000 Long-term debt Deferred income taxes 60,000 27,000 30,000 Other liabilities 5,000 4,000 Total liabilities 113,000 126,000 Stockholders' equity 5% cumulative preferred stock, par value $100 per share; $100 liquidating value; authorized 250,000 shares; issued and outstanding 200,000 shares Common stock, no par; 10,000,000 shares authorized and 5,000,000 shares issued and outstanding Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 20,000 20,000 40,000 40,000 47,000 107,000 $220,000 44,000 104,000 $230,000