Auto Designs, Inc. Use the Selected Data from the Comparative Financial Statements for Financial

Essay

Auto Designs, Inc.
Use the selected data from the comparative financial statements for Auto Designs, Inc. to answer the questions that follow.

-Refer to the account information for Auto Designs, Inc.
REQUIRED:
1 Calculate percentage changes in accounts payable and income taxes payable. Give a possible explanation for the changes in these accounts.
2 By how much did Auto Designs' long­term and short­term borrowings change from 2014 to 2015? Give a possible explanation for the change in debt. What other financial statement would be useful in analyzing the change in borrowings? Why?