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\begin{tabular}{|c|c|c|c|c|c|c|}
\hline
& \multicolumn{6}{|c|}{ Balance Sheet } \\
\hline
& \multicolumn{6}{|c|}{ December 31 } \\
\hline
& \multicolumn{4}{|c|}{ Year } & \multicolumn{2}{|c|}{ Increase (Decrease) } \\
\hline
& \multicolumn{2}{|r|}{2025} & \multicolumn{2}{|r|}{2024} & \multirow[t]{2}{}{ Amount } & \multirow[t]{2}{}{[tex]$\%$[/tex]} \\
\hline
Assets & & & & & & \\
\hline
Cash & [tex]$\$[/tex][tex]$ & $[/tex]2,327,500[tex]$ & $[/tex]\[tex]$ & $615,000$ & & \\
\hline
Accounts receivable & & $1,487,500$ & & $1,155,000$ & & \\
\hline
Inventory & & $3,185,000$ & & $1,680,000$ & & \\
\hline
Buildings & & $12,600,000$ & & $12,600,000$ & & \\
\hline
Less: Accumulated depreciation & & $(2,100,000)$ & & $(1,050,000)$ & & \\
\hline
Total assets & $\$[/tex] & [tex]$17,500,000$[/tex] & [tex]$\$[/tex][tex]$ & $[/tex]15,000,000[tex]$ & & \\
\hline
Liabilities and Stockholders' Equity & & & & & & \\
\hline
Accounts payable & $[/tex]\[tex]$ & $1,592,500$ & $\$[/tex] & [tex]$1,890,000$[/tex] & & \\
\hline
Contingent liability & & [tex]$1,592,500$[/tex] & & [tex]$1,110,000$[/tex] & & \\
\hline
Common stock & & [tex]$7,665,000$[/tex] & & [tex]$7,665,000$[/tex] & & \\
\hline
Retained earnings & & [tex]$6,650,000$[/tex] & & [tex]$4,335,000$[/tex] & & \\
\hline
Total liabilities and stockholders' equity & [tex]$\$[/tex][tex]$ & $[/tex]17,500,000[tex]$ & $[/tex]\[tex]$[/tex] & [tex]$15,000,000$[/tex] & & \\
\hline
\end{tabular}



Answer :

GinnyAnswer
To clarify and calculate everything step-by-step, we'll focus on calculating the increase (decrease) amounts and percentages in the balance sheet from 2024 to 2025:

1. Calculate the Amount of Increase (Decrease):

- Cash:
[tex]\[ \text{Change in Cash} = \$2,327,500 - \$615,000 = \$1,712,500 \][/tex]

- Accounts Receivable:
[tex]\[ \text{Change in Accounts Receivable} = \$1,487,500 - \$1,155,000 = \$332,500 \][/tex]

- Inventory:
[tex]\[ \text{Change in Inventory} = \$3,185,000 - \$1,680,000 = \$1,505,000 \][/tex]

- Buildings:
[tex]\[ \text{Change in Buildings} = \$12,600,000 - \$12,600,000 = \$0 \][/tex]

- Accumulated Depreciation:
[tex]\[ \text{Change in Accumulated Depreciation} = (\$-2,100,000) - (\$-1,050,000) = -\$1,050,000 \][/tex]

- Total Assets:
[tex]\[ \text{Change in Total Assets} = \$17,500,000 - \$15,000,000 = \$2,500,000 \][/tex]

- Accounts Payable:
[tex]\[ \text{Change in Accounts Payable} = \$1,592,500 - \$1,890,000 = -\$297,500 \][/tex]

- Contingent Liability:
[tex]\[ \text{Change in Contingent Liability} = \$1,592,500 - \$1,110,000 = \$482,500 \][/tex]

- Common Stock:
[tex]\[ \text{Change in Common Stock} = \$7,665,000 - \$7,665,000 = \$0 \][/tex]

- Retained Earnings:
[tex]\[ \text{Change in Retained Earnings} = \$6,650,000 - \$4,335,000 = \$2,315,000 \][/tex]

- Total Liabilities and Stockholders' Equity:
[tex]\[ \text{Change in Total Liabilities and Stockholders' Equity} = \$17,500,000 - \$15,000,000 = \$2,500,000 \][/tex]

2. Calculate the Percentage of Increase (Decrease):

To calculate the percentage increase or decrease, use the formula:
[tex]\[ \text{Percentage Change} = \left( \frac{\text{Change in Value}}{\text{Original Value}} \right) \times 100 \][/tex]

- Cash:
[tex]\[ \text{Percentage Change in Cash} = \left( \frac{\$1,712,500}{\$615,000} \right) \times 100 \approx 278.86\% \][/tex]

- Accounts Receivable:
[tex]\[ \text{Percentage Change in Accounts Receivable} = \left( \frac{\$332,500}{\$1,155,000} \right) \times 100 \approx 28.78\% \][/tex]

- Inventory:
[tex]\[ \text{Percentage Change in Inventory} = \left( \frac{\$1,505,000}{\$1,680,000} \right) \times 100 \approx 89.58\% \][/tex]

- Buildings:
[tex]\[ \text{Percentage Change in Buildings} = \left( \frac{\$0}{\$12,600,000} \right) \times 100 = 0\% \][/tex]

- Accumulated Depreciation:
[tex]\[ \text{Percentage Change in Accumulated Depreciation} = \left( \frac{-\$1,050,000}{\$-1,050,000} \right) \times 100 = 100\% \][/tex]

- Total Assets:
[tex]\[ \text{Percentage Change in Total Assets} = \left( \frac{\$2,500,000}{\$15,000,000} \right) \times 100 \approx 16.67\% \][/tex]

- Accounts Payable:
[tex]\[ \text{Percentage Change in Accounts Payable} = \left( \frac{-\$297,500}{\$1,890,000} \right) \times 100 \approx -15.74\% \][/tex]

- Contingent Liability:
[tex]\[ \text{Percentage Change in Contingent Liability} = \left( \frac{\$482,500}{\$1,110,000} \right) \times 100 \approx 43.48\% \][/tex]

- Common Stock:
[tex]\[ \text{Percentage Change in Common Stock} = \left( \frac{\$0}{\$7,665,000} \right) \times 100 = 0\% \][/tex]

- Retained Earnings:
[tex]\[ \text{Percentage Change in Retained Earnings} = \left( \frac{\$2,315,000}{\$4,335,000} \right) \times 100 \approx 53.40\% \][/tex]

- Total Liabilities and Stockholders' Equity:
[tex]\[ \text{Percentage Change in Total Liabilities and Stockholders' Equity} = \left( \frac{\$2,500,000}{\$15,000,000} \right) \times 100 \approx 16.67\% \][/tex]

Now we have calculated all the increases and decreases in both amounts and percentages, without leaving any calculations to assumptions.

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