Answer:
Dec 31, 2020 Dec 31, 2019 Increase/Decrease
$ $ $ %
Assets
Plant assets (net) 395,214 331,000 64,214 19.40
Current assets 123,000 100,000 23,000 23.00
Total Assets 518,214 431,000 87,214 20.24
Equity
Common stock, 166,026 118,000 48026 40.70
Retained earnings 127,214 151,000 (23786) (15.75)
Liability
Current liabilities 88,134 74,000 14,134 19.10
Long-term liabilities 136,840 88,000 48840 55.50
Total Equity & Liab 518,214 431,000 87,214 20.24
Explanation:
Total Asset has been increase by 20.24% and it is net increase by both current and non current assets. In equity section there is an increase in the common stock by 40.70% which indicate there is an issue of stock in 2020. The retained earning is decreased significantly which shows either there is a loss net loss this year or any dividend payment which decrease the retained earning as compared to 2019. There is also an increase in total liability, the major contribution to this increase is of Long term liabilities which is significantly increased by 55.5%. I think it might be a reason for if there is a net loss in 2020 which reduces the retained earning in the form of interest expense which is also increased.
