The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: Required: 1. Complete the two final columns shown beside each item in Pinnacle's comparative financial statements. (Round your percentage answers to 1 decimal place. Any decrease in the amount should be indicated with minus sign.) Increase (Decrease) 2017 over 2016 4 2017 2016 Amount Income statement Sales revenue Cost of goods sold $ 106,400 $96.000 50,200 46.500 Gross profit 56.200 49.500 Operating expenses 35,400 32.400 Interest expense 3,700 3,700 income before income tax expense 17.100 13.400 Income tax expense (30%) 5.130 4,020 Net income $ 11.970 $ 9.380 Balance sheet: Cash $ 55,370 $16,770 Accounts receivable, net Inventory 35,800 30,500 23,800 44,500 Property and Equipment, net Total assets Accounts payable 92,600 102.000 $ 207,570 $ 193.770 S 41,100 $33.500 Income tax payable 1,000 470 Note payable, long-term Total liabilities Contributed capital (9,000 shares) Retained earningst 37,000 37,000 79,100 70.970 96,500 96,500 31,970 26,300 Total liabilities and shareholders' equity $ 207,570 $ 193.770 Percentage 16 %
The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: Required: 1. Complete the two final columns shown beside each item in Pinnacle's comparative financial statements. (Round your percentage answers to 1 decimal place. Any decrease in the amount should be indicated with minus sign.) Increase (Decrease) 2017 over 2016 4 2017 2016 Amount Income statement Sales revenue Cost of goods sold $ 106,400 $96.000 50,200 46.500 Gross profit 56.200 49.500 Operating expenses 35,400 32.400 Interest expense 3,700 3,700 income before income tax expense 17.100 13.400 Income tax expense (30%) 5.130 4,020 Net income $ 11.970 $ 9.380 Balance sheet: Cash $ 55,370 $16,770 Accounts receivable, net Inventory 35,800 30,500 23,800 44,500 Property and Equipment, net Total assets Accounts payable 92,600 102.000 $ 207,570 $ 193.770 S 41,100 $33.500 Income tax payable 1,000 470 Note payable, long-term Total liabilities Contributed capital (9,000 shares) Retained earningst 37,000 37,000 79,100 70.970 96,500 96,500 31,970 26,300 Total liabilities and shareholders' equity $ 207,570 $ 193.770 Percentage 16 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data:
Required:
1. Complete the two final columns shown beside each item in Pinnacle's comparative financial statements. (Round your percentage
answers to 1 decimal place. Any decrease in the amount should be indicated with minus sign.)
Increase (Decrease) 2017
over 2016
4
2017
2016
Amount
Income statement
Sales revenue
Cost of goods sold
$ 106,400 $96.000
50,200
46.500
Gross profit
56.200
49.500
Operating expenses
35,400
32.400
Interest expense
3,700
3,700
income before income tax expense
17.100
13.400
Income tax expense (30%)
5.130
4,020
Net income
$
11.970 $
9.380
Balance sheet:
Cash
$
55,370 $16,770
Accounts receivable, net
Inventory
35,800
30,500
23,800
44,500
Property and Equipment, net
Total assets
Accounts payable
92,600 102.000
$ 207,570 $ 193.770
S 41,100 $33.500
Income tax payable
1,000
470
Note payable, long-term
Total liabilities
Contributed capital (9,000 shares)
Retained earningst
37,000
37,000
79,100
70.970
96,500
96,500
31,970
26,300
Total liabilities and shareholders' equity
$ 207,570 $ 193.770
Percentage
16
%
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