Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a minus sign. Round percent change to one decimal place.)

2017 2016
Short-term investments $ 380,410 $ 239,775
Accounts receivable 102,573 106,151
Notes Payable 0 380,410

Question

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Shahzaibfaraz Shahzaibfaraz · Answer 1 · 2020-04-19T05:24:52+02:00

Answer:

Dollar changes,

Short term investments = $140635

Accounts receivable = -$3578

Notes Payable = -$380410

Percentage Changes,

Short term investments = 58.7%

Accounts receivable = -3.4%

Notes Payable = -100%

Explanation:

The dollar change can simply be calculated as,

Dollar change = New value - Old value

Dollar Change

Short term investments 2017 = 380410 - 239775 = $140635

Accounts receivable 2017 = 102573 - 106151 = -$3578

Notes Payable 2017 = 0 - 380410 = -$380410

The percentage changes can simply be calculated as follows,

Percentage change = [(New value - Old value) / Old value] *100

Percentage changes

Short term investments 2017 = [(380410 - 239775) / 239775] * 100 = 58.7%

Accounts receivable 2017 = [(102573 - 106151) / 106151] * 100 = -3.4%

Notes Payable 2017 = [(0 - 380410) / 380410] * 100 = -100%