part 1
June 30, 2008/2007
Assets
Cash- 34,700/23,500
accounts receivable- 101,600/92,300
inventory- 146,300/142,100
Investment-0/50,000
Land-145,000/0
equipment- 215,000/175,500
accumulated depreciation- (53,400)/ (41,300)
2008= 594,000 /2007=442,100
Liabilities and stockholders equity
accounts payable (merchandise creditors)- 100,900/95,200
Accrued expense(operating expenses)- 15,000/13,200
Dividends payable- 12,500/10,000
common stock, $1 par- 56,000/50,000
paid in capital in excess of par- common stock- 220,000/100,000
2008=594,000/ 2007= 442,100
To analyze the changes in the financial statement items between 2008 and 2007, we can calculate the differences in the amounts.
1. Cash:
- Increase from $23,500 (2007) to $34,700 (2008): $34,700 - $23,500 = $11,200 increase.
2. Accounts Receivable:
- Increase from $92,300 (2007) to $101,600 (2008): $101,600 - $92,300 = $9,300 increase.
3. Inventory:
- Increase from $142,100 (2007) to $146,300 (2008): $146,300 - $142,100 = $4,200 increase.
4. Investment:
- Decrease from $50,000 (2007) to $0 (2008): $0 - $50,000 = $50,000 decrease.
5. Land:
- Increase from $0 (2007) to $145,000 (2008): $145,000 - $0 = $145,000 increase.
6. Equipment:
- Increase from $175,500 (2007) to $215,000 (2008): $215,000 - $175,500 = $39,500 increase.
7. Accumulated Depreciation:
- Increase from ($41,300) (2007) to ($53,400) (2008): ($53,400) - ($41,300) = ($12,100) increase.
8. Accounts Payable (Merchandise Creditors):
- Increase from $95,200 (2007) to $100,900 (2008): $100,900 - $95,200 = $5,700 increase.
9. Accrued Expense (Operating Expenses):
- Increase from $13,200 (2007) to $15,000 (2008): $15,000 - $13,200 = $1,800 increase.
10. Dividends Payable:
- Increase from $10,000 (2007) to $12,500 (2008): $12,500 - $10,000 = $2,500 increase.
11. Common Stock, $1 Par:
- Increase from $50,000 (2007) to $56,000 (2008): $56,000 - $50,000 = $6,000 increase.
12. Paid-in Capital in Excess of Par - Common Stock:
- Increase from $100,000 (2007) to $220,000 (2008): $220,000 - $100,000 = $120,000 increase.
These are the differences in the financial statement items between 2008 and 2007.