The comparative financial statements, prepared at December 31, for Pinnacle Plus showed the following summarized data:
Required:
1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements.
(Round your percentage values to 1 decimal place)
PINNACLE PLUS
Horizontal Analysis
Increase (Decrease) in the Current year (versus Previous year)
Current Year Previous Year Amount Percentage
Income Statement
Sales Revenue $115,000 $102,500 %
Cost of Goods Sold 53,000 48,500
Gross Profit 62,000 54,000
Operating Expenses 38,500 34,250
Interest Expense 4,500 4,500
Income before Income Tax Expense 19,000 15,250
Income Tax Expense (30%) 5,700 4,575
Net Income $13,300 $10,675 %
Balance Sheet
Cash $71,200 $38,000 %
Accounts Receivable, Net 18,000 11,000
Inventory 25,500 39,000
Property and Equipment, Net 95,500 107,500
Total Assets $210,200 $195,500 %
Accounts Payable $43,000 $35,500 %
Income Tax Payable 2,000 1,000
Note Payable (long-term) 45,000 45,000
Total Liabilities 90,000 81,500
Common Stock (par $10) 86,000 86,000
Retained Earnings * 34,200 28,000
Total Liabilities and Stockholders' Equity $210,200 $195,500 %
During the current year, cash dividends amounting to $7,100 were declared and paid.
