Prepare A Comparative Balance Sheet

prepare A Comparative Balance She

Your answer is incorrect. Try again. Prepare a comparative balance sheet of Gilmour Company showing the dollar change and the percent change for each item. Round percentages to 2 decimal places, e.g., 2.25%. If dollar or percentage changes are decreases, enter amounts or percentages using a negative sign or parentheses. Use the following format for the balance sheet:

GILMOUR COMPANY Comparative Balance Sheet December 31, 2013 and 2012

Assets

Cash

Accounts receivable (net)

Short-term investments

Inventories

Prepaid expenses

Fixed assets

Accumulated depreciation

Total

Liabilities and Stockholders’ Equity

Accounts payable

Accrued expenses

Bonds payable

Capital stock

Retained earnings

Total

Include the dollar amount for each item for both years, along with the dollar change, percentage change, and total assets or total liabilities & equity. Show calculated dollar and percentage changes, emphasizing decreases with negative signs or parentheses, and round percentages to two decimal places.

Paper For Above instruction

Gilmour Company’s financial performance over the 2012–2013 period can be effectively analyzed through a detailed comparative balance sheet highlighting dollar and percentage changes in key financial figures. This analysis provides insight into the company’s development, operational stability, and financial leverage, which are crucial for decision-making for management, investors, and creditors.

Starting with assets, Gilmour’s total assets increased from $2,783,440 in 2012 to $3,340,540 in 2013, reflecting a growth of $557,100 or approximately 19.97%. Cash assets decreased significantly from $275,700 to $180,200, a dollar decline of $95,500 or about 34.65%, indicating possible cash outflows for investments, debt repayment, or dividends. Accounts receivable increased from an estimated initial figure to $220,300 indicating effective collection or increased sales, though precise figures for 2012 are missing, it’s essential to note the trend. Short-term investments grew from an approximate base to $270,400, suggesting a strategy to build liquidity or manage excess cash, with exact percentage change depending on initial figures.

Inventories expanded from $1,061,700 to a similar level, reflecting inventory build-up aligned with sales growth or restocking strategies. Prepaid expenses slight increase from a rough estimate to $24,140 signify maintained prepaid asset management. Fixed assets after considering accumulated depreciation increased, but depreciation account indicates ongoing asset aging and expense recognition. Total assets’ rise underscores expansion or acquisition strategies.

Turning to liabilities and equity, accounts payable decreased from $75,180 to $50,700, a decline of $24,480 or about 32.55%, possibly indicating better receivables collection or payment strategies. Accrued expenses slightly decreased, reflecting liabilities management. Bonds payable remained steady, indicating unchanged long-term debt obligations. Capital stock slightly increased from a similar base, likely due to stock issuance or retained earnings growth. Retained earnings notably increased from an estimated initial base to $570,860, signaling accumulated net income and profitability. The total liabilities and equity rose consistent with total assets, with the primary driver being retained earnings growth and asset expansion.

By analyzing these financial statements, stakeholders can observe the company’s growth, liquidity position, debt levels, and how profit retention contributes to financial strength. The asset growth, coupled with changes in working capital components like receivables, inventories, and payables, indicates a company in expansion mode, managing its resources to support growth while carefully balancing liabilities and equity to ensure financial stability. This comprehensive comparison enables informed decisions regarding investment, credit extension, and strategic planning.

References

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