The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst Year 2 $336,240* $285,000 285,560 241,000 50,680 33,460 17,220 5,510 $ 11,710 Year 1 $ 4,380 18,280 52,460 34,270 $109,390 44,000 30,200 13,800 4,200 $ 9,600 $ 8,800 22,000 46,000 29,000 $105,800 $ 12,550 $ 15,200 39,830 38,800 30,000 30,000 27,010 21,800 $109,390 $105,800 *One-third was credit sales. +During Year 2, cash dividends amounting to $6,500 were declared and paid. Required: 1. Using the concept of horizontal analyis, complete the following columns for each item in the preceding comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places (i.e., 0.1243

The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst Year 2 $336,240* $285,000 285,560 241,000 50,680 33,460 17,220 5,510 $ 11,710 Year 1 $ 4,380 18,280 52,460 34,270 $109,390 44,000 30,200 13,800 4,200 $ 9,600 $ 8,800 22,000 46,000 29,000 $105,800 $ 12,550 $ 15,200 39,830 38,800 30,000 30,000 27,010 21,800 $109,390 $105,800 *One-third was credit sales. +During Year 2, cash dividends amounting to $6,500 were declared and paid. Required: 1. Using the concept of horizontal analyis, complete the following columns for each item in the preceding comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places (i.e., 0.1243

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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