Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense 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 Income Tax Payable Notes Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings $ PINNACLE PLUS Horizontal Analysis $ 130,000 56,000 74,000 31,000 3,000 40,000 12,000 28,000 $ 76,900 19,000 24,000 94,000 $ 213,900 $ 46,000 3,000 30,000 79,000 86,000 48,900 Total Liabilities and Stockholders' Equity $ 213,900 Current Year Previous Year $ 113,000 50,000 63,000 29,000 3,000 31,000 9,300 $ 21,700 $ $ $ 42,600 12,000 36,000 100,000 $ 181,000 $ $ 37,000 $ 1,500 30,000 68,500 86,000 26,500 $ 181,000 $ $ Increase (Decrease) in the Current year (versus Previous year) Percentage Amount 17,000 6,000 11,000 2,000 0 9,000 2,700 6,300 43,960 X 7,000 (12,000) (6,000) 32,960 X 9,000 1,560 X 0 10,560 X 0 22,400 32,960 X 15.0 % 12.0 % 17.5 % 6.9 % 0.0 % 29.0 % 29.0 % 29.0 % 132.0 58.3 (33.3) (6.0) 18.2 % % % % % 24.3 % 86.7 X % 0.0 % 15.5 X % 0.0 % 84.5 18.2 %
Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense 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 Income Tax Payable Notes Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings $ PINNACLE PLUS Horizontal Analysis $ 130,000 56,000 74,000 31,000 3,000 40,000 12,000 28,000 $ 76,900 19,000 24,000 94,000 $ 213,900 $ 46,000 3,000 30,000 79,000 86,000 48,900 Total Liabilities and Stockholders' Equity $ 213,900 Current Year Previous Year $ 113,000 50,000 63,000 29,000 3,000 31,000 9,300 $ 21,700 $ $ $ 42,600 12,000 36,000 100,000 $ 181,000 $ $ 37,000 $ 1,500 30,000 68,500 86,000 26,500 $ 181,000 $ $ Increase (Decrease) in the Current year (versus Previous year) Percentage Amount 17,000 6,000 11,000 2,000 0 9,000 2,700 6,300 43,960 X 7,000 (12,000) (6,000) 32,960 X 9,000 1,560 X 0 10,560 X 0 22,400 32,960 X 15.0 % 12.0 % 17.5 % 6.9 % 0.0 % 29.0 % 29.0 % 29.0 % 132.0 58.3 (33.3) (6.0) 18.2 % % % % % 24.3 % 86.7 X % 0.0 % 15.5 X % 0.0 % 84.5 18.2 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Req 1
Req 2A
Income Statement
Sales Revenue
Cost of Goods Sold
Gross Profit
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.)
Operating Expenses
Interest Expense
Income before Income Tax Expense
Income Tax Expense (30%)
Net Income
Balance Sheet
Cash
Accounts Receivable, Net
Inventory
Property and Equipment, Net
Total Assets
Req 2B
Accounts Payable
Income Tax Payable
Notes Payable (long-term)
Total Liabilities
Common Stock (par $10)
Retained Earnings
Total Liabilities and Stockholders' Equity
$
$
PINNACLE PLUS
Horizontal Analysis
$
$
Current
Year
130,000
56,000
74,000
31,000
3,000
40,000
12,000
28,000
$ 76,900
19,000
24,000
94,000
213,900
46,000
3,000
30,000
79,000
86,000
48,900
$ 213,900
Previous
Year
$ 113,000
50,000
63,000
29,000
3,000
31,000
9,300
21,700
$ 42,600
12,000
36,000
100,000
181,000
37,000
1,500
30,000
68,500
86,000
26,500
$ 181,000
$
$
$
$
$
$
$
Increase (Decrease)
in the Current year (versus
Previous year)
Percentage
Amount
17,000
6,000
11,000
2,000
0
9,000
2,700
6,300
43,960 x
7,000
(12,000)
(6,000)
32,960 x
9,000
1,560 X
0
10,560 X
0
22,400
32,960 x
15.0
12.0
17.5
6.9
0.0
29.0
29.0
29.0
%
%
%
%
%
%
%
%
132.0 × %
58.3
%
(33.3)
%
(6.0)
%
18.2
%
%
24.3
86.7 X %
0.0 %
15.5 X %
0.0
%
84.5
18.2
%
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