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Question
The balance sheet data for Randolph Company for 2 recent years are as follows:
| Assets | Year 2 | Year 1 |
| Current assets | $ 445 | $280 |
| Plant assets | 680 | 520 |
| Total assets | $1,125 | $800 |
| Liabilities & Stockholders' Equity | ||
| Current liabilities | $ 285 | $120 |
| Long-term debt | 255 | 160 |
| Common stock | 325 | 320 |
| Retained earnings | 260 | 200 |
| Total liabilities and stockholders' equity | $1,125 | $800 |
a. Using horizontal analysis, show the percentage change for each balance sheet item using Year 1 as the base year.
b. Using vertical analysis, prepare a comparative balance sheet.
Round percentages to one decimal place.
Answer
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