Monday, September 23, 2019

The comparative temporary investments and inventory balances of a company are provided below. 2014 2013

The comparative temporary investments and inventory balances of a company are provided below.
                         2014 2013
Temporary investments $46,400 $40,000
Inventory              73,600 80,000

Based on this information, what is the amount and percentage of increase or decrease that would be shown in a balance sheet with horizontal analysis?

Answer:



Temporary investments......... Inventory..............................$6,400 increase ($46,400 – $40,000), or 16% $6,400 decrease ($73,600 – $80,000), or –8%

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