Asked by Princess Lockett on May 04, 2024
Verified
Cash and accounts receivable for Ashfall Co. are provided below. Current Year Prior Year Cash $62,400$58,000 Accounts receivable (net) 42,00050,000\begin{array}{lll}&\text { Current Year }&\text { Prior Year }\\\text { Cash } & \$ 62,400 & \$ 58,000 \\\text { Accounts receivable (net) } & 42,000 & 50,000\end{array} Cash Accounts receivable (net) Current Year $62,40042,000 Prior Year $58,00050,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Round percentages to one decimal place.
Horizontal Analysis
A method of financial examination that involves comparing past financial information across different time frames to detect trends and patterns of growth.
Accounts Receivable
Funds that clients or customers owe to a company for products or services that have been provided but not yet compensated.
Percentage Of Increase
A measure expressed as a percentage that reflects the rise in value or quantity of something compared to its previous value.
- Undertake horizontal and vertical assessments of financial statements.
- Grasp the essential nature of alterations in financial report elements through time.
Verified Answer
($62,400 - $58,000) or 7.6%Accounts receivable$8,000 decrease
($42,000 - $50,000) or
(16%)
Learning Objectives
- Undertake horizontal and vertical assessments of financial statements.
- Grasp the essential nature of alterations in financial report elements through time.
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