506 Chapter 12 Financial Statements
Liabilities 2007 2006
Current liabilities:
Accounts payable $76,500 $124,200
Other $62,500 $55,000
To tal current liabilities $139,000 $179,200
To tal long-term liabilities $1,675,000 $1,687,500
To tal liabilities $1,814,000 $1,866,700
Equity 2006 2007
Contributed capital $250,000 $250,000
Retained earnings $763,000 $382,300
To tal equity $1,013,000 $632,300
Total liabilities and equity $2,827,000 $2,499,000- Complete a vertical analysis of this company’s 2007 balance sheet.
- Complete a horizontal analysis of this company’s 2007 versus 2006 balance sheets.