Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Notes Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings $ PINNACLE PLUS Horizontal Analysis $ 130,000 56,000 74,000 31,000 3,000 40,000 12,000 28,000 $ 76,900 19,000 24,000 94,000 $ 213,900 $ 46,000 3,000 30,000 79,000 86,000 48,900 Total Liabilities and Stockholders' Equity $ 213,900 Current Year Previous Year $ 113,000 50,000 63,000 29,000 3,000 31,000 9,300 $ 21,700 $ $ $ 42,600 12,000 36,000 100,000 $ 181,000 $ $ 37,000 $ 1,500 30,000 68,500 86,000 26,500 $ 181,000 $ $ Increase (Decrease) in the Current year (versus Previous year) Percentage Amount 17,000 6,000 11,000 2,000 0 9,000 2,700 6,300 43,960 X 7,000 (12,000) (6,000) 32,960 X 9,000 1,560 X 0 10,560 X 0 22,400 32,960 X 15.0 % 12.0 % 17.5 % 6.9 % 0.0 % 29.0 % 29.0 % 29.0 % 132.0 58.3 (33.3) (6.0) 18.2 % % % % % 24.3 % 86.7 X % 0.0 % 15.5 X % 0.0 % 84.5 18.2 %
Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Notes Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings $ PINNACLE PLUS Horizontal Analysis $ 130,000 56,000 74,000 31,000 3,000 40,000 12,000 28,000 $ 76,900 19,000 24,000 94,000 $ 213,900 $ 46,000 3,000 30,000 79,000 86,000 48,900 Total Liabilities and Stockholders' Equity $ 213,900 Current Year Previous Year $ 113,000 50,000 63,000 29,000 3,000 31,000 9,300 $ 21,700 $ $ $ 42,600 12,000 36,000 100,000 $ 181,000 $ $ 37,000 $ 1,500 30,000 68,500 86,000 26,500 $ 181,000 $ $ Increase (Decrease) in the Current year (versus Previous year) Percentage Amount 17,000 6,000 11,000 2,000 0 9,000 2,700 6,300 43,960 X 7,000 (12,000) (6,000) 32,960 X 9,000 1,560 X 0 10,560 X 0 22,400 32,960 X 15.0 % 12.0 % 17.5 % 6.9 % 0.0 % 29.0 % 29.0 % 29.0 % 132.0 58.3 (33.3) (6.0) 18.2 % % % % % 24.3 % 86.7 X % 0.0 % 15.5 X % 0.0 % 84.5 18.2 %
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 48CE
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