Compute the annual dollar changes and percent changes for each of the following items.

Understand the Problem

The question is asking to compute the annual dollar changes and percent changes for several financial items listed. It requires performing calculations based on the current and prior year values provided in the table.

Answer

- Cash: $-2,800$, $-21.5\%$ - Accounts Receivable: $34,800$, $138.1\%$ - Equipment, Net: $6,400$, $12.9\%$ - Land: $25,500$, $35.4\%$ - Total Assets: $63,900$, $39.9\%$

Steps to Solve

Calculate Dollar Changes To find the dollar change for each item, subtract the prior year value from the current year value.

For example, for Cash: $$ \text{Dollar Change} = \text{Current Year Cash} - \text{Prior Year Cash} = 10,200 - 13,000 = -2,800 $$

Repeat for the other items:

Accounts Receivable: $$ 60,000 - 25,200 = 34,800 $$
Equipment, Net: $$ 56,000 - 49,600 = 6,400 $$
Land: $$ 97,500 - 72,000 = 25,500 $$
Total Assets: $$ 223,700 - 159,800 = 63,900 $$

Calculate Percent Changes To find the percent change, divide the dollar change by the prior year value, and then multiply by 100 to convert to a percentage.

For example, for Cash: $$ \text{Percent Change} = \left(\frac{\text{Dollar Change}}{\text{Prior Year Cash}}\right) \times 100 = \left(\frac{-2,800}{13,000}\right) \times 100 \approx -21.5% $$

Repeat for the other items:

Accounts Receivable: $$ \left(\frac{34,800}{25,200}\right) \times 100 \approx 138.1% $$
Equipment, Net: $$ \left(\frac{6,400}{49,600}\right) \times 100 \approx 12.9% $$
Land: $$ \left(\frac{25,500}{72,000}\right) \times 100 \approx 35.4% $$
Total Assets: $$ \left(\frac{63,900}{159,800}\right) \times 100 \approx 39.9% $$

List Final Results Once calculations for dollar changes and percent changes are done, compile the results in a clear manner for reporting.

Cash:
- Dollar Change: $-2,800
- Percent Change: $-21.5%$
Accounts Receivable:
- Dollar Change: $34,800
- Percent Change: $138.1%$
Equipment, Net:
- Dollar Change: $6,400
- Percent Change: $12.9%$
Land:
- Dollar Change: $25,500
- Percent Change: $35.4%$
Total Assets:
- Dollar Change: $63,900
- Percent Change: $39.9%$

More Information

The calculations provide insight into the financial growth or decline of various assets over the period. Understanding percentage changes is crucial for assessing financial performance.

Tips

Forgetting to subtract the prior year from the current year can lead to incorrect dollar change values.
Not converting the decimal to a percentage by multiplying by 100 is a frequent error when calculating percent changes.
Rounding percentages too early in the process can cause inaccuracies.

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