BUS 616 Summer 2015 Quiz #2 Given below are balance sheets for Vernon's Shoppe, Inc. for a three year period, plus some additional information. Required: Vernon's Shoppe, Inc. Balance Sheets As of December 31, 20x3, 20x2, and 20x1 20x3 20x2 20x1 Assets Cash 10,821 48,369 57,263 Accounts receivable (net) 342,660 318,275 341,512 Inventory 443,528 286,311 256,400 Prepaid expenses 37,606 17,530 15,428 Total Current Assets 834,615 670,485 670,603 Plant and Equipment (net) 735,218 707,522 656,419 Total Assets 1,569,833 1,378,007 1,327,022 Liabilities and Owner Equity Liabilities Accounts payable 396,310 321,517 300,567 Accrued expenses 275,381 260,049 243,812 Total Current Liabilities 671,691 581,566 544,379 Long Term Notes Payable 350,000 300,000 300,000 Common Stock 10,000 10,000 10,000 Retained Earnings 538,142 486,441 472,643 Total Liabilities and Owner Equity 1,569,833 1,378,007 1,327,022 Sales (from Income Statement) 1,808,422 1,631,509 1,521,344 Also note: Gross margin remains constant at 40% of sales each year Allowance for bad debts is $20,000 each year 1) on this tab , compute the rates of change for each balance sheet account for 20x2 and 20x3 (MUST SHOW FORMULA) 2) on the second tab, compute the ratios specified ( make sure your Calculations/Formulas can be clearly followed ), and provide in-depth analysis with Chart
