Presented below are the comparative balance sheets for Museum Company for the years 2003 through 2005.
Museum Company
Balance Sheet
as of December 31,
2005 2004 2003
Assets
Cash and cash equivalents $164,000 $119,000 $3,000
Inventory 625,000 633,000 704,000
Other current assets 717,000 755,000 845,000
Property and equipment (net) 665,000 673,000 722,000
Other assets 1,262,000 1,448,000 1,477,000
Total Assets $3,433,000 $3,628,000 $3,751,000
Liabilities and shareholders' equity
Liabilities
Accounts payable $147,000 $142,000 $137,000
Other current liabilities 937,000 999,000 978,000
Long term liabilities 1,007,000 998,000 1,164,000
Total liabilities $2,091,000 $2,139,000 $2,279,000
Shareholders' equity 1,342,000 1,488,000 1,472,000
Total liabilities and shareholders' equity $3,433,000 $3,627,000 $3,751,000
REQUIRED:
a.) Compute the trend balance sheet in the space provided.
Museum Company
Trend Balance Sheet
as of December 31,
2005 2004 2003
Assets
Cash and cash equivalents ________ ________ ________
Inventory ________ ________ ________
Other current assets ________ ________ ________
Property and equipment (net) ________ ________ ________
Other assets ________ ________ ________
Total Assets
Liabilities and shareholders' equity
Liabilities
Accounts payable ________ ________ ________
Other current liabilities ________ ________ ________
Long term liabilities ________ ________ ________
Total liabilities ________ ________ ________
Shareholders' equity ________ ________ ________
Total liabilities and shareholders' equity
b.) Answer the following questions:
1) What happened to total assets during this three-year period?
2) Did each component of assets decrease at the same rate as total assets?
3) Did assets, liabilities and stockholders' equity decrease at the same rate?
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