The balance sheet for Lucky 7, Inc. for 2015 and 2016 is shown below:
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| 2016 | 2015 |
| Current assets: |
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Cash | $35,000 | $14,500 |
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Accounts receivable (net) | $17,500 | $19,500 |
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Inventory | $59,000 | $42,000 |
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Prepaid expenses | $500 | $2,500 |
| Total current assets | $112,000 | $78,500 |
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| Long-term investments | $62,000 | $45,000 |
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| Plant assets | $520,000 | $320,000 |
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Less: accumulated depreciation | $50,000 | $35,000 |
| Total plant assets | $470,000 | $285,000 |
| Total assets | $644,000 | $408,500 |
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| Current liabilities: |
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Accounts payable | $27,000 | $22,500 |
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Accrued liabilities | $1,000 | $1,200 |
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Income taxes payable | $1,500 | $2,500 |
| Total current liabilities | $29,500 | $26,200 |
| Long-term liabilities: |
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Notes payable | $250,000 | $150,000 |
| Total liabilities | $279,500 | $176,200 |
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| Common stock, $5 par value | $150,000 | $100,000 |
| Additional paid-in capital | $116,000 | $66,300 |
| Retained earnings | $111,000 | $66,000 |
| Treasury stock | ($12,500) | $0 |
| Total stockholders' equity | $364,500 | $232,300 |
| Total liabilities and stockholders' equity | $644,000 | $408,500 |
Prepare a horizontal analysis for the balance sheet of Lucky 7, Inc.
| ASSETS | Increase/decrease | |||
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| 2016 | 2015 | Amount | Percent |
| Current assets: |
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Cash | $35,000 | $14,500 | $20,500 | 141.38% |
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Accounts receivable (net) | $17,500 | $19,500 | ($2,000) | (10.26%) |
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Inventory | $59,000 | $42,000 | $17,000 | 40.48% |
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Prepaid expenses | $500 | $2,500 | ($2000) | (80.00%) |
| Total current assets | $112,000 | $78,500 | $33,500 | 42.68% |
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| Long-term investments | $62,000 | $45,000 | $17,000 | 37.78% |
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| Plant assets | $520,000 | $320,000 | $200,000 | 62.50% |
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Less: accumulated depreciation | $50,000 | $35,000 | $15,000 | 42.86% |
| Total plant assets | $470,000 | $285,000 | $185,000 | 64.91% |
| Total assets | $644,000 | $408,500 | $235,500 | 57.65% |
| LIABILITIES |
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| Current liabilities |
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Accounts payable | $27,000 | $22,500 | $4,500 | 20.00% |
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Accrued liabilities | $1,000 | $1,200 | ($200) | (16.67%) |
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Income taxes payable | $1,500 | $2,500 | ($1,000) | (40.00%) |
| Total current liabilities | $29,500 | $26,200 | $3,300 | 12.60% |
| Long-term liabilities: |
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Notes payable | $250,000 | $150,000 | $100,000 | 66.67% |
| Total liabilities | $279,500 | $176,200 | $103,300 | 58.63% |
| STOCKHOLDERS' EQUITY |
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| Common stock, $5 par value | $150,000 | $100,000 | $50,000 | 50.00% |
| Additional paid-in capital | $116,000 | $66,300 | $49,700 | 74.96% |
| Retained earnings | $111,000 | $66,000 | $45,000 | 68.18% |
| Treasury stock | ($12,500) | $0 | ($12,500) |
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| Total stockholders' equity | $354,500 | $232,300 | $132,200 | 56.91% |
| Total liabilities and stockholders' equity | $644,000 | $408,500 | $235,500 | 57.65% |