Activity 2

A. Use the following financial information to prepare a balance sheet with vertical analysis as of
June 30, 2002, for Northern Industries, Inc.: cash, $44,300; accounts receivable, $127,600;
merchandise inventory, $88,100; prepaid maintenance, $4,100; office supplies, $4,000; land,
$154,000; building, $237,000; fixtures, $21,400; vehicles, $64,000; computers, $13,000; goodwill,
$20,000; investments, $32,000; accounts payable, $55,700; salaries payable, $23,200; notes
payable ( 6 - month), $38,000; mortgage payable, $91,300; debenture bonds, $165,000; common
stock, $350,000; and retained earnings, $86,300.

Note: Round each answer to the nearest whole number.

Northern Industries, Inc.

Balance Sheet
June 30, 2002
Assets
Current Assets Percent
Cash $44,300.00
Accounts Receivable 127,600.00
Merchandise Inventory 88,100.00
Prepaid Maintenance
Office Supplies
Total Current Assets

Property, Plant and Equipment

Land
Buildings
Fixtures
Vehicles
Computers
 Total Property, Plant and Equiment

Investments and Other Assets

Investments
Goodwill
Total Assets

Liabilities and Owner's and Equity

Current Liabilities
Accounts Payable
Salaries Payable
Notes Payable
Total Current Liabilities

Long - Term Liabilities

Mortgage Payable
Debenture Bonds
Total Long - Term Liabilities

Total Liabilities

Owner's Equity
Common Stock
Retained Earnings
Total Owner's Equity

Total Liabilities and Owner's Equity

b. The following financial information is for Northern Industries as of June 30, 2003: cash, $40,200;
accounts receivable, $131,400; merchandise inventory, $92,200; prepaid maintenance, $3,700;
office supplies, $6,200; land, $154,000; building, $231,700; fixtures, $23,900; vehicles, $55,100;
computers, $16,800; goodwill, $22,000; investments, $36,400; accounts payable, $51,800; salaries
payable, $25,100; notes payable ( 6 - month), $19,000; mortgage payable, $88,900; debenture
bonds, $165,000; common stock, $350,000; and retained earnings, $113,800.
Prepare a comparative balance sheet with horizontal analysis for 2002 and 2003.

Northern Industries, Inc.

Balance Sheet
June 30, 2002 and 2003
Increase / Decrease
Assets 2003 2002 Amount Percent
Current Assets
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Maintenance
Office Supplies
Total Current Assets $0.00 $0.00

Property, Plant and Equipment

Land
Buildings
Fixtures
Vehicles
Computers
Total Property, Plant and Equiment $0.00 $0.00

Investments and Other Assets

Investments
Goodwill
Total Assets $0.00 $0.00

Liabilities and Owner's and Equity

Current Liabilities
Accounts Payable
Salaries Payable
Notes Payable
Total Current Liabilities $0.00 $0.00

Long - Term Liabilities

Mortgage Payable
Debenture Bonds
Total Long - Term Liabilities $0.00 $0.00

Total Liabilities $0.00 $0.00

Owner's Equity
Common Stock
Retained Earnings
Total Owner's Equity $0.00 $0.00

Total Liabilities and Owner's Equity $0.00 $0.00