PRACTICAL PROBLEM 2 Washington Company Statements of Financial Position As of December 31, 20X1, 20X2, 20X3 20X3 ASSETS Current assets: Cash and cash equivalents Accounts receivable-trade Inventories Prepaid income taxes Prepaid expenses and other Total current assets Property, plant, and equipment, net Intangibles resulting from business acquisitions Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued liabilities Unearned revenue on maintenance contracts Short-term debt Current portion of long-term debt Total current liabilities Long-term debt Other long-term liabilities Deferred income taxes Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings 88,669 53,681 1,942,626 88,584 53,087 1,250,202 78,348 42,899 1,165,056 129,162 222,759 20,556 207,281 97,264 677,022 165,757 190,401 173,446 1,206,626 137,644 243,816 341,121 218,053 114,224 1,054,858 184,273 182,950 172,746 1,594,827 123,948 234,961 325,367 203,449 118,201 1,005,926 186,795 169,462 184,645 1,546,828 20X2 20X1

29,298 423,935 606,179 63,543 60,073 1,183,028 1,620,994 443,409 44,171 $ 3,291,602

24,114 386,718 553,442 54,451 50,515 1,069,240 1,485,949 399,728 31,783 $ 2,986,700

23,081 362,449 539,823 49,375 53,668 1,028,396 1,399,615 376,025 29,095 $ 2,833,131

Total stockholders' equity Total liabilities and stockholders' equity

2,084,976 $ 3,291,602

1,391,873 $ 2,986,700

1,286,303 $ 2,833,131

Vertical 20X13 20X12 20X11

Horizontal 20X13 20X12

0.89% 12.88% 18.42% 1.93% 1.83% 35.94% 49.25% 13.47% 1.34% 100.00%

0.81% 12.95% 18.53% 1.82% 1.69% 35.80% 49.75% 13.38% 1.06% 100.00%

0.81% 12.79% 19.05% 1.74% 1.89% 36.30% 49.40% 13.27% 1.03% 100.00%

21.50% 9.62% 9.53% 16.70% 18.92% 10.64% 9.09% 10.93% 38.98% 10.21%

4.48% 6.70% 2.52% 10.28% -5.88% 3.97% 6.17% 6.30% 9.24% 5.42%