The following balance sheet items are available from Carnell Inc. as of December 31, 2012: 2011...

 

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The following balance sheet items are available from Carnell Inc. as of December 31, 2012: 2011 2012 75,500 50,000 125,000 240,000 100,000 15,000 (in millions) 35,035 85,065 25,000 300,000 80,000 25,635 Accounts payable Accounts receivable Bonds payable, due 12/31/2016 Buildings, net Capital stock, 25 par Cash Equipment, net Income taxes payable Interest payable 24,000 12,250 24,000 16,465 7,550 13,755 25,650 300,000 Inventory 27,270 200,000 100,000 Land Long-term investments Notes payable, due 6/30/2013 Supplies Additional paid-in capital 125,000 100,000 100,000 12,500 13,500 200,000 190,000 Patents 6,000 6,000 Prepaid rent Retained earnings Salaries payable 10,150 12,275 146,295 306,135 35,500 33,560 Required a. Prepare a comparative, classified balance sheet for Carnell Inc. b. Perform horizontal and vertical analyses and interpret the results. Round percentages to one decimal point (i.e., 10.1%). c. Assume the same information above except that in 2012, Bonds payable is R0 while Retained earnings is 271,295. Does this new information change any interpretations previously made? The following balance sheet items are available from Carnell Inc. as of December 31, 2012: 2011 2012 75,500 50,000 125,000 240,000 100,000 15,000 (in millions) 35,035 85,065 25,000 300,000 80,000 25,635 Accounts payable Accounts receivable Bonds payable, due 12/31/2016 Buildings, net Capital stock, 25 par Cash Equipment, net Income taxes payable Interest payable 24,000 12,250 24,000 16,465 7,550 13,755 25,650 300,000 Inventory 27,270 200,000 100,000 Land Long-term investments Notes payable, due 6/30/2013 Supplies Additional paid-in capital 125,000 100,000 100,000 12,500 13,500 200,000 190,000 Patents 6,000 6,000 Prepaid rent Retained earnings Salaries payable 10,150 12,275 146,295 306,135 35,500 33,560 Required a. Prepare a comparative, classified balance sheet for Carnell Inc. b. Perform horizontal and vertical analyses and interpret the results. Round percentages to one decimal point (i.e., 10.1%). c. Assume the same information above except that in 2012, Bonds payable is R0 while Retained earnings is 271,295. Does this new information change any interpretations previously made?

Answer rating: 100% (QA)

Step 1 Classified balance sheet Balance sheet is statement showing the financial position of organization Balance sheet is made up of the following equation Total assets Total liabilities Shareholders ... View the full answer