The current assets section of the company's two most recent balance sheets are presented below:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\
\text { Cash }&\$37,500 &\$ 29,400 \
\text { Accounts receivable, net } & 78,750 & 96,600 \
\text { Inventory } & 104,100 & 126,700 \
\text { Other current assets } & 9,200&7,750\\text { Total current assets }&229,550&260,450\\text { Total assets }&\$1,325,000&\$1,715,000
\end{array}$
-Refer to Regency Lighting.Complete a common size horizontal analysis of the current assets section of the balance sheet for Year 2.Your answers should be expressed as percentages and rounded to one decimal place.Provide a short explanation of this analysis.

Question

The current assets section of the company's two most recent balance sheets are presented below:
 $\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\
\text { Cash }&\$37,500 &\$ 29,400 \
\text { Accounts receivable, net } & 78,750 & 96,600 \
\text { Inventory } & 104,100 & 126,700 \
\text { Other current assets } & 9,200&7,750\\text { Total current assets }&229,550&260,450\\text { Total assets }&\$1,325,000&\$1,715,000
\end{array}$
-Refer to Regency Lighting.Complete a common size horizontal analysis of the current assets section of the balance sheet for Year 2.Your answers should be expressed as percentages and rounded to one decimal place.Provide a short explanation of this analysis.

Quizplus · Accepted Answer

The Answer of The current assets section of the company's two most recent balance sheets are presented below:
 $\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\
\text { Cash }&\$37,500 &\$ 29,400 \
\text { Accounts receivable, net } & 78,750 & 96,600 \
\text { Inventory } & 104,100 & 126,700 \
\text { Other current assets } & 9,200&7,750\\text { Total current assets }&229,550&260,450\\text { Total assets }&\$1,325,000&\$1,715,000
\end{array}$
-Refer to Regency Lighting.Complete a common size horizontal analysis of the current assets section of the balance sheet for Year 2.Your answers should be expressed as percentages and rounded to one decimal place.Provide a short explanation of this analysis.

The Current Assets Section of the Company's Two Most Recent