Analysis by Comparison
12. The trading accounts of a company covering two years are herewith submitted.
Analyze the accounts and make a report to the company showing the reasons for the difference in results.
| 1916 | |
| Merchandise Inventory, January 1, 1916 | $150,000.00 |
| Merchandise Purchases | 633,000.00 |
| Merchandise Sales, Travelers | 600,000.00 |
| Merchandise Sales, Domestic | 150,000.00 |
| Merchandise Sales, Cash | 10,000.00 |
| Commissions Paid Travelers | 30,000.00 |
| Salaries Paid Travelers | 30,000.00 |
| Salaries, Domestic Sales | 15,000.00 |
| Rental | 5,000.00 |
| Stationery, etc. | 3,000.00 |
| Expense | 22,000.00 |
| Interest | 4,000.00 |
| Inventory, January 1, 1917 | 125,000.00 |
| 1917 | |
| Merchandise Inventory, January 1, 1917 | $125,000.00 |
| Merchandise Purchases | 600,000.00 |
| Merchandise Sales, Travelers | 600,000.00 |
| Merchandise Sales, Domestic | 150,000.00 |
| Merchandise Sales, cash | 10,000.00 |
| Commissions Paid Travelers | 30,000.00 |
| Salaries Paid Travelers | 10,000.00 |
| Salaries, Domestic Sales | 10,000.00 |
| Rental | 5,000.00 |
| Stationery, etc. | 3,000.00 |
| Expense | 15,000.00 |
| Interest | 1,000.00 |
| Merchandise Inventory, January 1, 1918 | 125,000.00 |
13. A corporation’s balance sheets for August, 1918, and September, 1918, were respectively as follows:
August, 1918
| Assets | ||
| Plant and Equipment | $4,000,000.00 | |
| Furniture | 6,000.00 | |
| Tools | 3,000.00 | |
| Stable | 3,811.28 | |
| Cash | 15,250.36 | |
| Material Supplies | 30,750.28 | |
| Accounts Receivable | 28,920.13 | |
| Unexpired Insurance | 510.29 | |
| Total | $4,088,242.34 | |
| Liabilities | ||
| Capital Stock | $2,500,000.00 | |
| Bonds | 1,350,000.00 | |
| Accounts Payable | 31,336.28 | |
| Bills Payable | 26,240.12 | |
| Accrued Taxes | 3,500.00 | |
| Accrued Interest | 5,625.00 | |
| Profit and Loss | 171,540.94 | |
| Total | $4,088,242.34 | |
September, 1918
| Assets | ||
| Plant and Equipment | $4,012,310.21 | |
| Furniture | 6,205.58 | |
| Tools | 3,218.86 | |
| Stable | 4,009.37 | |
| Cash | 8,328.29 | |
| Material Supplies | 39,280.17 | |
| Accounts Receivable | 32,321.83 | |
| Unexpired Insurance | 832.12 | |
| Total | $4,106,506.43 | |
| Liabilities | ||
| Capital Stock | $2,500,000.00 | |
| Bonds | 1 ,362,000.00 | |
| Accounts Payable | 33,445.59 | |
| Bills Payable | 18,240.12 | |
| Accrued Taxes | 4,000.00 | |
| Accrued Interest | 11,250.00 | |
| Profit and Loss | 177,570.72 | |
| Total | $4,106,506.43 | |
Analyze the differences in the corresponding accounts for the period and show disposition of increased resources.