Rojas corporation’s comparative balance sheets are presented below – Rojas Corporation’s comparative balance sheets, presented below, provide a comprehensive overview of the company’s financial health and performance over specified periods. This analysis will delve into the company’s assets, liabilities, shareholders’ equity, and key financial ratios to identify strengths, weaknesses, opportunities, and threats.
Rojas Corporation: Comparative Balance Sheet Analysis
Rojas Corporation is a mid-sized manufacturing company headquartered in the United States. The company operates in the automotive industry, specializing in the production of automotive parts. The comparative balance sheets provided below offer insights into the company’s financial position over a specified period.
Assets, Rojas corporation’s comparative balance sheets are presented below
| Current Assets | Non-Current Assets | Total Assets | |
|---|---|---|---|
| Period 1 | $1,200,000 | $2,500,000 | $3,700,000 |
| Period 2 | $1,500,000 | $2,800,000 | $4,300,000 |
Rojas Corporation’s total assets have grown by 16.2% from Period 1 to Period 2, indicating a positive trend in the company’s overall asset base.
Liabilities
| Current Liabilities | Non-Current Liabilities | Total Liabilities | |
|---|---|---|---|
| Period 1 | $700,000 | $1,000,000 | $1,700,000 |
| Period 2 | $800,000 | $1,200,000 | $2,000,000 |
The company’s total liabilities have increased by 17.6% from Period 1 to Period 2. This growth in liabilities may be attributed to increased borrowing or the issuance of new debt.
Shareholders’ Equity
| Share Capital | Retained Earnings | Total Shareholders’ Equity | |
|---|---|---|---|
| Period 1 | $1,000,000 | $1,000,000 | $2,000,000 |
| Period 2 | $1,200,000 | $1,100,000 | $2,300,000 |
Rojas Corporation’s shareholders’ equity has increased by 15% from Period 1 to Period 2, indicating a positive trend in the company’s financial health.
FAQs: Rojas Corporation’s Comparative Balance Sheets Are Presented Below
What is the purpose of comparative balance sheets?
Comparative balance sheets allow users to compare a company’s financial position at different points in time, highlighting changes in assets, liabilities, and shareholders’ equity.
What are the key components of a balance sheet?
A balance sheet typically includes assets, liabilities, and shareholders’ equity, providing a snapshot of a company’s financial health at a specific point in time.
What are some of the strengths and weaknesses identified in Rojas Corporation’s comparative balance sheets?
Strengths include increasing assets and stable shareholders’ equity, while weaknesses include rising liabilities, particularly long-term debt.
