A)

Using the Balance Sheet found below, perform a horizontal analysis. Once complete, use your new version of the Balance Sheet to present and discuss the Balance Sheet of ABC Company B)

Based on the inferences you make from your horizontal analysis, discuss any improvements and/or changes that may have occurred since the prior year. Consider addressing the items that the Board of Directors requested information on throughout the project; (1) Accounts Receivables and the process for uncollectible accounts; (2) Payroll Liabilities as well as other Current or Long-Term liabilities; and (3) the types of investments held by ABC Company.

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A45 1 2 A ABC COMPANY BALANCE SHEET At December 31, 20X2 and December 31, 20X1 5 Assets 6 Current Assets 7 Cash and cash equivalents & Trading Securities 9 Accounts receivable 10 Allowance for doubtful accounts 11 Accounts receivable, net 12 Inventories 13 Prepaid expenses and other receivables 14 Available-for-sale securities 15 Total current assets 16 17 Property, plant and equipment, net 18 Intangible Assets 14 Total assets 20 21 Liabilities and Shareholders' Equity 22 Current Liabilities D E F G 2002 20X1 Dollar Change % Change S 182,225 143,010 48,000 39,600 28,000 19,500 (5,000) (2,900) 23,000 16,600 2,450 3,600 200 750 17,750 14,005 S 273,625 217,565 304,550 299,050 300 300 S 578,475 516.915 23 Salaries Payable 24 FICA-Social Security Taxes Payable 25 FICA-Medicare Taxes Payable 26 Employee Federal Income Taxes Payable 85,000 61,950 10,540 7,682 2,465 1,797 8,500 6,000 27 State Unemployment Taxes Payable 756 540 28 Federal Unemployment Taxes Payable 84 60 29 Notes payable or current portion of long-term debt S 24,000 24,000 30 Accounts payable 14,030 17,050 31 Total current liabilities 145,375 119,079 ZE 33 Long-term debt 104,400 128,400 249,775 247,479 34 Total liabilities 36 Shareholders' equity 37 Common stock, $10 per value: 50,000 shares authorized; 20.000 shares issued and outstan 38 Retained earnings 200,000 200,000 128,700 69.436 39 40 Total shareholders' equity 328,700 269,436 41 Total liabilities and shareholders' equity S 578,475 516,915 44 45 Balance Sheet (2) + Ready A45 1 2 A ABC COMPANY BALANCE SHEET At December 31, 20X2 and December 31, 20X1 5 Assets 6 Current Assets 7 Cash and cash equivalents & Trading Securities 9 Accounts receivable 10 Allowance for doubtful accounts 11 Accounts receivable, net 12 Inventories 13 Prepaid expenses and other receivables 14 Available-for-sale securities 15 Total current assets 16 17 Property, plant and equipment, net 18 Intangible Assets 14 Total assets 20 21 Liabilities and Shareholders' Equity 22 Current Liabilities D E F G 2002 20X1 Dollar Change % Change S 182,225 143,010 48,000 39,600 28,000 19,500 (5,000) (2,900) 23,000 16,600 2,450 3,600 200 750 17,750 14,005 S 273,625 217,565 304,550 299,050 300 300 S 578,475 516.915 23 Salaries Payable 24 FICA-Social Security Taxes Payable 25 FICA-Medicare Taxes Payable 26 Employee Federal Income Taxes Payable 85,000 61,950 10,540 7,682 2,465 1,797 8,500 6,000 27 State Unemployment Taxes Payable 756 540 28 Federal Unemployment Taxes Payable 84 60 29 Notes payable or current portion of long-term debt S 24,000 24,000 30 Accounts payable 14,030 17,050 31 Total current liabilities 145,375 119,079 ZE 33 Long-term debt 104,400 128,400 249,775 247,479 34 Total liabilities 36 Shareholders' equity 37 Common stock, $10 per value: 50,000 shares authorized; 20.000 shares issued and outstan 38 Retained earnings 200,000 200,000 128,700 69.436 39 40 Total shareholders' equity 328,700 269,436 41 Total liabilities and shareholders' equity S 578,475 516,915 44 45 Balance Sheet (2) + Ready