Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Sales $ 2,318 $ 2,030 $ 1,847 $ 1,693 $ 1,580 $ 1,469 $ 1,204 Cost of goods sold 1,667 1,356 1,167 1,021 949 887 707 Gross profit 651 674 680 672 631 582 497 Operating expenses 497 389 356 263 228 225 187 Net income $ 154 $ 285 $ 324 $ 409 $ 403 $ 357 $ 310 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Assets Cash $ 89 $ 118 $ 122 $ 125 $ 130 $ 128 $ 132 Accounts receivable, net 640 672 608 467 411 389 275 Merchandise inventory 2,315 1,685 1,472 1,241 1,114 946 686 Other current assets 59 54 33 59 50 51 26 Long-term investments 0 0 0 182 182 182 182 Plant assets, net 2,832 2,821 2,469 1,392 1,439 1,280 1,099 Total assets $ 5,935 $ 5,350 $ 4,704 $ 3,466 $ 3,326 $ 2,976 $ 2,400 Liabilities and Equity Current liabilities 1,491 $ 1,254 $ 822 $ 684 $ 594 $ 561 $ 362 Long-term liabilities 1,595 1,390 1,352 628 641 694 521 Common stock 1,080 1,080 1,080 960 960 840 840 Other paid-in capital 270 270 270 240 240 210 210 Retained earnings 1,499 1,356 1,180 954 891 671 467 Total liabilities and equity $ 5,935 $ 5,350 $ 4,704 $ 3,466 $ 3,326 $ 2,976 $ 2,400 Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year. 2. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did inventory increase over this period?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selected comparative financial statements of Haroun Company follow.

HAROUN COMPANY
Comparative Income Statements
For Years Ended December 31, 2021–2015
($ thousands)	2021	2020	2019	2018	2017	2016	2015
Sales	$ 2,318	$ 2,030	$ 1,847	$ 1,693	$ 1,580	$ 1,469	$ 1,204
Cost of goods sold	1,667	1,356	1,167	1,021	949	887	707
Gross profit	651	674	680	672	631	582	497
Operating expenses	497	389	356	263	228	225	187
Net income	$ 154	$ 285	$ 324	$ 409	$ 403	$ 357	$ 310

HAROUN COMPANY
Comparative Year-End Balance Sheets
December 31, 2021–2015
($ thousands)	2021	2020	2019	2018	2017	2016	2015
Assets
Cash	$ 89	$ 118	$ 122	$ 125	$ 130	$ 128	$ 132
Accounts receivable, net	640	672	608	467	411	389	275
Merchandise inventory	2,315	1,685	1,472	1,241	1,114	946	686
Other current assets	59	54	33	59	50	51	26
Long-term investments	0	0	0	182	182	182	182
Plant assets, net	2,832	2,821	2,469	1,392	1,439	1,280	1,099
Total assets	$ 5,935	$ 5,350	$ 4,704	$ 3,466	$ 3,326	$ 2,976	$ 2,400
Liabilities and Equity
Current liabilities	1,491	$ 1,254	$ 822	$ 684	$ 594	$ 561	$ 362
Long-term liabilities	1,595	1,390	1,352	628	641	694	521
Common stock	1,080	1,080	1,080	960	960	840	840
Other paid-in capital	270	270	270	240	240	210	210
Retained earnings	1,499	1,356	1,180	954	891	671	467
Total liabilities and equity	$ 5,935	$ 5,350	$ 4,704	$ 3,466	$ 3,326	$ 2,976	$ 2,400

Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year.
2. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did inventory increase over this period?

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