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 $ 2,272 $ 1,989 $ 1,810 $ 1,659 $ 1,548 $ 1,440 $ 1,180 Cost of goods sold 1,634 1,329 1,143 1,001 930 870 693 Gross profit 638 660 667 658 618 570 487 Operating expenses 486 380 349 257 223 220 183 Net income $ 152 $ 280 $ 318 $ 401 $ 395 $ 350 $ 304 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Assets Cash $ 85 $ 113 $ 117 $ 120 $ 124 $ 123 $ 127 Accounts receivable, net 613 644 583 447 394 373 263 Merchandise inventory 2,218 1,615 1,411 1,189 1,068 907 658 Other current assets 57 51 32 56 48 48 25 Long-term investments 0 0 0 175 175 175 175 Plant assets, net 2,715 2,704 2,365 1,334 1,379 1,226 1,052 Total assets $ 5,688 $ 5,127 $ 4,508 $ 3,321 $ 3,188 $ 2,852 $ 2,300 Liabilities and Equity Current liabilities 1,429 $ 1,202 $ 788 $ 656 $ 569 $ 538 $ 347 Long-term liabilities 1,528 1,331 1,295 601 614 665 499 Common stock 1,035 1,035 1,035 920 920 805 805 Other paid-in capital 259 259 259 230 230 201 201 Retained earnings 1,437 1,300 1,131 914 855 643 448 Total liabilities and equity $ 5,688 $ 5,127 $ 4,508 $ 3,321 $ 3,188 $ 2,852 $ 2,300 Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year. 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	$ 2,272	$ 1,989	$ 1,810	$ 1,659	$ 1,548	$ 1,440	$ 1,180
Cost of goods sold	1,634	1,329	1,143	1,001	930	870	693
Gross profit	638	660	667	658	618	570	487
Operating expenses	486	380	349	257	223	220	183
Net income	$ 152	$ 280	$ 318	$ 401	$ 395	$ 350	$ 304

HAROUN COMPANY
Comparative Year-End Balance Sheets
December 31, 2021–2015
($ thousands)	2021	2020	2019	2018	2017	2016	2015
Assets
Cash	$ 85	$ 113	$ 117	$ 120	$ 124	$ 123	$ 127
Accounts receivable, net	613	644	583	447	394	373	263
Merchandise inventory	2,218	1,615	1,411	1,189	1,068	907	658
Other current assets	57	51	32	56	48	48	25
Long-term investments	0	0	0	175	175	175	175
Plant assets, net	2,715	2,704	2,365	1,334	1,379	1,226	1,052
Total assets	$ 5,688	$ 5,127	$ 4,508	$ 3,321	$ 3,188	$ 2,852	$ 2,300
Liabilities and Equity
Current liabilities	1,429	$ 1,202	$ 788	$ 656	$ 569	$ 538	$ 347
Long-term liabilities	1,528	1,331	1,295	601	614	665	499
Common stock	1,035	1,035	1,035	920	920	805	805
Other paid-in capital	259	259	259	230	230	201	201
Retained earnings	1,437	1,300	1,131	914	855	643	448
Total liabilities and equity	$ 5,688	$ 5,127	$ 4,508	$ 3,321	$ 3,188	$ 2,852	$ 2,300

Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year.
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?

Sales
Cost of goods sold
Gross profit
Operating expenses
Net income
2021
%
%
Income Statement Trends
For Years Ended December 31, 2021-2015
2020
2018
%
HAROUN COMPANY
%
2019
%
%
%
%
2017
%
%
2016
%
%
2015
100.0 %
100.0
100.0
100.0
100.0 %

Assets
Cash
Accounts receivable, net
Merchandise inventory
Other current assets
Long-term investments
Plant assets, net
Total assets
Liabilities and Equity
Current liabilities
Long-term liabilities
Common stock
Other paid-in capital
Retained earnings
Total liabilities & equity
2021
%
%
%
%
2020
HAROUN COMPANY
Balance Sheet Trends
December 31, 2021-2015
2019
%
%
%
%
%
%
%
%
2018
%
%
%
%
2017
%
%
%
2016
%
%
%
%
2015
100.0 %
100.0
100.0
100.0
100.0
100.0
100.0 %
T
100.0 %
100.0
100.0
100.0
100.0
100.0 %

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