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    Horizontal and Vertical Analyses of Balance Sheet Data

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    The comparative condensed balance sheets of Conard Corporation are presented below.

    CONARD CORPORATION
    Comparative Condensed Balance Sheets
    December 31

    2012 // 2011
    Assets
    Current assets $ 73,610 // $ 79,730
    Property, plant, and equipment (net) 99,050 // 89,870
    Intangibles 27,450 // 39,620
    Total assets $200,110 // $209,220

    Liabilities and stockholders' equity
    Current liabilities $ 41,830 // $ 48,180
    Long-term liabilities 143,710 // 149,470
    Stockholders' equity 14,570 // 11,570
    Total liabilities and stockholders' equity $200,110 // $209,220

    1. Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2011 as a base.
    2. Prepare a vertical analysis of the balance sheet data for Conard Corporation in columnar form for 2012.

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    https://brainmass.com/business/financial-statements/horizontal-and-vertical-analyses-of-balance-sheet-data-498889

    Solution Preview

    In a horizontal analysis, we compare each year by determining the percentage of change between the two years. We divide the 1st year with the second year. For example, the columns would be set up as follows:

    Current assets:
    73,610 // 79,730
    0.92 = 92% ...

    Solution Summary

    In this solution, I help the student complete a full horizontal analysis and a full vertical analysis based on the financial statement information given for Conard Corporation.

    $2.19

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