8th EditionN. Gregory Mankiw814 explanations
2nd EditionDavid Anderson, Margaret Ray1,042 explanations
4th EditionPaul Krugman, Robin Wells312 explanations
8th EditionN. Gregory Mankiw813 explanations
ACCOUNTINGThe balance sheets for Fantasy Football for 2018 and 2017 are provided below.
$$
\text{FANTASY FOOTBALL}\\ \text{Balance Sheets}\\ \text{December 31}\\ \begin{matrix}
\text{ } & \text{2018} & \text{2017}\\ \hline
\underline{\text{Assets}} & \text{ } & \text{ }\\
\text{Current assets:} & \text{ } & \text{ }\\
\text{Cash} & \text{$\$ 208,000$} & \text{$\$ 262,200$}\\
\text{Accounts receivable} & \text{$856,000$} & \text{$999,400$}\\
\text{Inventory} & \text{$1,900,000$} & \text{$1,349,000$}\\
\text{Supplies} & \text{$124,000$} & \text{$87,400$}\\
\text{Long-term assets:} & \text{ } & \text{ }\\
\text{Equipment} & \text{$1,292,000$} & \text{$1,292,000$}\\
\text{Less: Accumulated depreciation} & \underline{(380,000)} & \underline{(190,000)}\\
\text{Total assets} & \underline{\underline{\$ 4,000,000}} & \underline{\underline{\$ 3,800,000}}\\
\underline{\text{Liabilities and Stockholders' Equity}} & \text{ } & \text{ }\\
\text{Current liabilities:} & \text{ } & \text{ }\\
\text{Accounts payable} & \text{$\$ 168,000$} & \text{$\$ 129,200$}\\
\text{Interest payable} & \text{0} & \text{$3,800$}\\
\text{Income tax payable} & \text{$76,000$} & \text{$76,000$}\\
\text{Long-term liabilities:} & \text{ } & \text{ }\\
\text{Notes payable} & \text{$760,000$} & \text{$760,000$}\\
\text{Stockholders' equity:} & \text{ } & \text{ }\\
\text{Common stock} & \text{$786,600$} & \text{$786,600$}\\
\text{Retained earnings} & \underline{2,209,400} & \underline{2,044,400}\\
\text{Total liabilities and stockholders' equity} & \underline{\underline{\$ 4,000,000}} & \underline{\underline{\$ 3,800,000}}\\
\end{matrix}
$$
1. Prepare a vertical analysis of Fantasy Football's 2018 and 2017 balance sheets. Express each amount as a percentage of total assets for that year. 2. Prepare a horizontal analysis of Fantasy Football's 2018 balance sheet using 2017 as the base year.
