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 profit 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) Long-term debt (interest rate: 10%) Common shares (6,000 shares) Retained earningst Year 2 Year 1 $367,950 $310,000 312,178 262,000 55,780 48,000 37,410 33,400 18,370 6,310 14,600 4,800 $ 12,060 $ 9,800 $ 4,270 $ 8,400 16,830 48,350 29,810 $ 99,260 $ 11,820 40,480 24,000 22,960 20,000 42,000 25,000 $ 95,400 $14,200 39,200 24,000 18,000 Required: 1 Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places, Le., 0.1243 should be entered as 12.43.) Statement of earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Eamings before income taxes Income tax expense Statement of financial position Net earnings Cash Accounts receivable (ne) Inventory Property, plant, and equipment() $ Increase (Decrease) Year 2 over Year 1 Percentage $ 99,260 $ 95,400 Current liabilities Long-term debt Common shares Retained eamings "One-third was credit sales. *During Year 2, cash dividends amounting to $7,100 were declared and paid. 2-a. By what amount did working capital change? Change in working capital 2-b. What was the percentage change in the income tax rate? (Round Intermediate calculations and final answer to 2 decimal places.) Percentage change 2-c. What was the amount of cash collections from customers in year 2? Amount of cash info 2-d. What was the change for the gross profit margin ratio? (Round Intermediate calculations and final answer to 1 decimal place.) Percentage change
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 profit 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) Long-term debt (interest rate: 10%) Common shares (6,000 shares) Retained earningst Year 2 Year 1 $367,950 $310,000 312,178 262,000 55,780 48,000 37,410 33,400 18,370 6,310 14,600 4,800 $ 12,060 $ 9,800 $ 4,270 $ 8,400 16,830 48,350 29,810 $ 99,260 $ 11,820 40,480 24,000 22,960 20,000 42,000 25,000 $ 95,400 $14,200 39,200 24,000 18,000 Required: 1 Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places, Le., 0.1243 should be entered as 12.43.) Statement of earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Eamings before income taxes Income tax expense Statement of financial position Net earnings Cash Accounts receivable (ne) Inventory Property, plant, and equipment() $ Increase (Decrease) Year 2 over Year 1 Percentage $ 99,260 $ 95,400 Current liabilities Long-term debt Common shares Retained eamings "One-third was credit sales. *During Year 2, cash dividends amounting to $7,100 were declared and paid. 2-a. By what amount did working capital change? Change in working capital 2-b. What was the percentage change in the income tax rate? (Round Intermediate calculations and final answer to 2 decimal places.) Percentage change 2-c. What was the amount of cash collections from customers in year 2? Amount of cash info 2-d. What was the change for the gross profit margin ratio? (Round Intermediate calculations and final answer to 1 decimal place.) Percentage change
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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 profit
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)
Long-term debt (interest rate: 10%)
Common shares (6,000 shares)
Retained earningst
Year 2
Year 1
$367,950
$310,000
312,178 262,000
55,780
48,000
37,410
33,400
18,370
6,310
14,600
4,800
$ 12,060 $ 9,800
$ 4,270
$ 8,400
16,830
48,350
29,810
$ 99,260
$ 11,820
40,480
24,000
22,960
20,000
42,000
25,000
$ 95,400
$14,200
39,200
24,000
18,000
Required:
1 Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a
minus sign. Round percentage answers to 2 decimal places, Le., 0.1243 should be entered as 12.43.)
Statement of earnings
Sales revenue
Cost of sales
Gross margin
Operating expenses and interest expense
Eamings before income taxes
Income tax expense
Statement of financial position
Net earnings
Cash
Accounts receivable (ne)
Inventory
Property, plant, and equipment()
$
Increase (Decrease)
Year 2 over Year 1
Percentage
$ 99,260
$ 95,400
Current liabilities
Long-term debt
Common shares
Retained eamings
"One-third was credit sales.
*During Year 2, cash dividends amounting to $7,100 were declared and paid.
2-a. By what amount did working capital change?
Change in working capital
2-b. What was the percentage change in the income tax rate? (Round Intermediate calculations and final answer to 2 decimal
places.)
Percentage change
2-c. What was the amount of cash collections from customers in year 2?
Amount of cash info
2-d. What was the change for the gross profit margin ratio? (Round Intermediate calculations and final answer to 1 decimal place.)
Percentage change
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