The comparative balance sheet of Drango Company appears below: HUERTO COMPANY Comparative Balance Sheet December 31, 2007

Question:

The comparative of Drango Company appears below:
HUERTO COMPANY
Comparative 31, 2007
Assets
__________________2007_________2006
Current assets............$ 340..................$280
Plant assets...................675....................520
Total assets..............$1,015..................$800
Liabilities and stockholders' equity
Current liabilities.......$ 180.................$120
Long-term debt............250...................160
Common stock.............325...................320
Retained earnings........260...................200
Total liabilities and stockholders' equity
................................$1,015................$800
Instructions
(a) Using horizontal analysis, show the percentage change for each item using 2006 as a base year.
(b) Using vertical analysis, prepare a common size comparative Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...