Required: 1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. 2-a. Which account increased by the largest dollar amount? 2-b. Which account increased by the largest percentage?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
PINNACLE PLUS
Horizontal Analysis
Increase (Decrease)
in the Current year (versus
Previous year)
Current Year Previous Year
Amount
Percentage
Income Statement
Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
$
118,000 $
104,600
%
53,600
48,800
64,400
55,800
40,000
35,000
Interest Expense
4,800
4,800
Income before Income Tax Expense
19,600
16,000
Income Tax Expense (30%)
5,880
4,800
%
Net Income
Balance Sheet
$
13,720 $
11,200
69,620 $
18,600
Cash
$
35,400
%
Accounts Receivable, Net
10,400
Inventory
25,800
39,600
Property and Equipment, Net
95,800
109,000
%
Total Assets
Accounts Payable
209,820 $
43,600 $
$
194,400
$
35,800
%
Income Tax Payable
Note Payable (long-term)
Total Liabilities
Common Stock (par $10)
Retained Earnings
Total Liabilities and Stockholders' Equity
2,600
1,300
48,000
48,000
94,200
85,100
81,000
81,000
34,620
28,300
$
209,820 $
194,400
%
Pinnacle Plus declared and paid a cash dividend of $7,400 in the current year. Its comparative financial statements, prepared i
December 31, reported the following summarized information:
Required:
1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements.
2-a. Which account increased by the largest dollar amount?
2-b. Which account increased by the largest percentage?
Transcribed Image Text:PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus Previous year) Current Year Previous Year Amount Percentage Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses $ 118,000 $ 104,600 % 53,600 48,800 64,400 55,800 40,000 35,000 Interest Expense 4,800 4,800 Income before Income Tax Expense 19,600 16,000 Income Tax Expense (30%) 5,880 4,800 % Net Income Balance Sheet $ 13,720 $ 11,200 69,620 $ 18,600 Cash $ 35,400 % Accounts Receivable, Net 10,400 Inventory 25,800 39,600 Property and Equipment, Net 95,800 109,000 % Total Assets Accounts Payable 209,820 $ 43,600 $ $ 194,400 $ 35,800 % Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity 2,600 1,300 48,000 48,000 94,200 85,100 81,000 81,000 34,620 28,300 $ 209,820 $ 194,400 % Pinnacle Plus declared and paid a cash dividend of $7,400 in the current year. Its comparative financial statements, prepared i December 31, reported the following summarized information: Required: 1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. 2-a. Which account increased by the largest dollar amount? 2-b. Which account increased by the largest percentage?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education