Current Year Previous Year Amount Percentage Income Statement Sales Revenue 118,000 $ 53,600 64,400 104,600 48,800 55,800 35,000 4,800 16,000 4,800 11,200 % Cost of Goods Sold Gross Profit Operating Expenses 40,000 Interest Expense 4,800 19,600 5,880 13,720 $ Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable % 69,620 $ 18,600 25,800 35,400 10,400 39,600 109,000 194,400 35,800 1,300 48,000 85,100 81,000 28,300 % 95,800 209,820 $ % 43,600 $ % Income Tax Payable 2,600 Note Payable (long-term) Total Liabilities 48,000 94,200 81,000 34,620 Common Stock (par $10) Retained Earnings Total Ligabilities and Stockbolders' Eguity 209 820 194 400 %24 %24 %24

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. (Decreases
should be indicated by a minus sign. Round percentage values to 1 decimal place.)
DINNACLE PLUe
PINNACLE PLUS
Horizontal Analysis
Increase (Decrease)
in the Current year (versus
Previous year).
Current Year Previous Year
Amount
Percentage
Income Statement
Sales Revenue
118,000 $
53,600
64,400
$
104,600
%
Cost of Goods Sold
48,800
Gross Profit
Operating Expenses
Interest Expense
55,800
40,000
35,000
4,800
4,800
Income before Income Tax Expense
19,600
16,000
Income Tax Expense (30%)
Net Income
Balance Sheet
Cash
Accounts Receivable, Net
Inventory
Property and Equipment, Net
Total Assets
Accounts Payable
Income Tax Payable
Note Payable (long-term)
Total Liabilities
Common Stock (par $10)
Retained Earnings
Total Liabilities and Stockholders' Equity
5,880
13,720 $
4,800
11,200
%
69,620 $
35,400
10,400
%
18,600
25,800
39,600
95,800
109,000
209,820 $
194,400
$
43,600 $
35,800
%
2,600
1,300
48,000
48,000
94,200
85,100
81,000
81,000
34,620
28,300
$
209,820 $
194,400
%
%24
%24
%24
Transcribed Image Text:Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) DINNACLE PLUe PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus Previous year). Current Year Previous Year Amount Percentage Income Statement Sales Revenue 118,000 $ 53,600 64,400 $ 104,600 % Cost of Goods Sold 48,800 Gross Profit Operating Expenses Interest Expense 55,800 40,000 35,000 4,800 4,800 Income before Income Tax Expense 19,600 16,000 Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity 5,880 13,720 $ 4,800 11,200 % 69,620 $ 35,400 10,400 % 18,600 25,800 39,600 95,800 109,000 209,820 $ 194,400 $ 43,600 $ 35,800 % 2,600 1,300 48,000 48,000 94,200 85,100 81,000 81,000 34,620 28,300 $ 209,820 $ 194,400 % %24 %24 %24
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