g comparative financial statements
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data:
Year 2
Year 1
Statenent of Earnings
Sales revenue
$380,678* $320, e00
320, 270
60, 400
268, 000
52, 000
Cost of sales
Gross nargin
Operating expenses and interest expense
Earnings before income taxes
Income tax expense
41,030
19,370
36, 600
15,400
7,448
$ 11,930
5,700
$ 9,700
Net earnings
Statenent of Financial Position
$ 4,110
15, 13е
43,718
$ 8,100
18, 000
38, 200
21, 800
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipnent (net)
25,020
$ 87,970
$ 14,530
35,310
18, 200
$ 85, 100
$ 17,600
34, 100
18, e00
Current liabilities (no interest)
Non-current liabilities (10% interest)
Common shares (6, 200 shares)
Retained earningst
20, 130
$ 87,970
15, 480
85, 100
*One-third was credit sales.
tDuring Year 2, cash dividends amounting to $7,200 were declared and pald.
Required:
1. Complete the following columns for each item in the preceding comparative financial statements (Negative answers should be
indicated by a minus sign. Round percentage answers to 2 decimal places (l.e., 0.1243 should be entered as 12.43).):
Increase (Decrease)
Year 2 over Year 1
Аmount
Percentage
Statement of earnings:
Sales revenue
Cost of sales
Gross margin
Operating expenses and interest expense
Eamings before income taxes
Income tax expense
Net earnings
Statement of financial position:
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
Current liabilities
Long-term debt
Common shares
Retained earnings
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