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