Following is a comparative balance sheet for Barking Shark International Corporation:
Barking Shark International Corporation
Balance Sheet
December 31, 2014 and 2013
2014 2013
Current assets
Cash $ 10,000 $ 5,000
Short-term investments 7,000 10,000
Accounts receivable, net 30,000 23,000
Inventory 37,000 35,000
Prepaid expenses 4,000 3,000
Total current assets $ 88,000 $ 76,000
Property, plant, and equipment, net 33,300 35,000
Other assets 27,000 22,500
Total assets $148,300 $133,500
Current liabilities
Short-term borrowings $ 28,400 $ 13,900
Accounts payable 20,000 22,500
Total current liabilities $48,400 $36,400
Non-current debt 37,500 33,000
Total liabilities $85,900 $69,400
Shareholders' equity
Common shares $20,000 $20,000
Retained earnings 42,400 44,100
Total shareholders' equity $62,400 $64,100
Total liabilities and shareholders'
equity $148,300 $133,500
Required:
a. Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet.
b. Indicate any positive or negative developments from one year to the next.