A)

B)

Presented below is the comparative balance sheet for Gilmour Company. Assets Gilmour Company Comparative Balance Sheet As of December 31, 2021 and 2020 Cash Accounts receivable (net) Short-term investments Inventories Prepaid expenses Plant & equipment Accumulated depreciation Liabilities and Stockholders' Equity Accounts payable Accrued expenses Bonds payable Capital stock Retained earnings 2021 December 31 $180,000 220,000 270,000 1,060,000 25,000 2,585,000 (1,000,000) $3,340,000 $50,000 170,000 450,000 2,100,000 570,000 $3,340,000 2020 $275,000 155,000 150,000 980,000 25,000 1,950,000 (750,000) $2,785,000 $75,000 200,000 190,000 1,770,000 550,000 $2,785,000 Of what value is the additional information provided in the vertical analysis of Gilmour Company? Cash Assets Accounts receivable (net) Short-term investments Inventories Prepaid expenses Plant and equipment Accumulated depreciation Total GILMOUR COMPANY Comparative Balance Sheet December 31, 2021 and 2020 $180,000 220,000 270,000 1,060,000 25,000 2,585,000 (1,000,000) $3,340,000 Liabilities and Stockholders' Equity Accounts payable Accrued expenses Bonds payable Capital stock Retained earnings Total $50,000 170,000 450,000 2,100,000 570,000 2021 $3,340,000 December 31 5.39 % 6.59 % 8.08 % 31.74 % 0.75 % 77.39 % (29.94 )% 100.00 % 1.50 % 5.09 % 13.47 % 62.87 % 17.07 % 100.00 % $275,000 155,000 150,000 980,000 25,000 1,950,000 (750,000 ) $2,785,000 $75,000 200,000 190,000 1,770,000 550,000 2020 $2,785,000 9.87 % 5.57 % 5.39 % 35.18 % 0.90 % 70.02 % (26.93 % 100.00 % 2.69 % 7.18 % 6.82 % 63.56 % 19.75 % 100.00 % Of what value is the additional information provided in the horizontal analysis of Gilmour Company? Cash Assets Accounts receivable (net) Investments Inventories Prepaid expenses Plant and equipment Accumulated depreciation Total GILMOUR COMPANY Comparative Balance Sheet December 31, 2021 and 2020 December 31 2021 $180,000 220,000 270,000 1,060,000 25,000 2,585,000 (1,000,000) $3,340,000 Liabilities and Stockholders' Equity Accounts payable Accrued expenses Bonds payable Capital stock Retained earnings Total $50,000 170,000 450,000 2,100,000 570,000 $3,340,000 2020 $275,000 155,000 150,000 980,000 25,000 1,950,000 (750,000) $2,785,000 $75,000 200,000 190,000 1,770,000 550,000 $2,785,000 Increase or (Decrease) $ Change $(95,000 ) 65,000 120,000 80,000 635,000 (250,000) $555,000 330,000 20,000 % Change (34.55) $555,000 41.94 80.00 8.16 32.56 $(25,000) (33.33 ) (30,000) (15.00 ) 260,000 33.33 19.93 136.84 18.64 3.64 19.93