P12-1 (Algo) Analyzing Comparative Financial Statements by Using Percentages (Horizontal Analysis) LO12-6 The comparative financial statements...

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P12-1 (Algo) Analyzing Comparative Financial Statements by Using Percentages (Horizontal Analysis) LO12-6 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 $324,420* $275,000 272,590 230,000 51,830 45,000 35,110 31,600 16,720 13,400 5,130 3,900 $ 11,590 $ 9,500 $ 4,480 $ 9,000 19,120 54,760 36,650 $115,010 $ 10,760 23,000 48,000 31,000 $111,000 $ 13,000 39,660 38,600 42,000 42,000 22,590 17,400 $115,010 $111,000 *One-third was credit sales. +During Year 2, cash dividends amounting to $6,400 were declared and paid. 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, i.e., 0.1243 should be entered as 12.43.): * Answer is complete but not entirely correct. Increase (Decrease) 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 Year 2 over Year 1 Amount Percentage $ 49,420 17.97 42,590 18.52 6,830 15.18 3,510 11.11 3,320 24.78 1,230 31.54 $ 2,090 22.00 (4,520) 50.20 x Accounts receivable (net) (3,880) 16.87 x Inventory 6,760 14.08 Property, plant, and equipment (net) 5,650 18.23 $ 4,010 3.61 Current liabilities (2,240) 17.23 Long-term debt 1,060 2.75 Common shares 0 0.00 Retained earnings 5,190 29.83 $ 4,010 3.61 2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) Answer is complete but not entirely correct. Percentage change 1.58 % increase 2-d. What was the change for the gross profit margin ratio? (Round intermediate calculations and final answer to 1 decimal place.) Answer is not complete. Percentage change % decrease P12-1 (Algo) Analyzing Comparative Financial Statements by Using Percentages (Horizontal Analysis) LO12-6 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 $324,420* $275,000 272,590 230,000 51,830 45,000 35,110 31,600 16,720 13,400 5,130 3,900 $ 11,590 $ 9,500 $ 4,480 $ 9,000 19,120 54,760 36,650 $115,010 $ 10,760 23,000 48,000 31,000 $111,000 $ 13,000 39,660 38,600 42,000 42,000 22,590 17,400 $115,010 $111,000 *One-third was credit sales. +During Year 2, cash dividends amounting to $6,400 were declared and paid. 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, i.e., 0.1243 should be entered as 12.43.): * Answer is complete but not entirely correct. Increase (Decrease) 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 Year 2 over Year 1 Amount Percentage $ 49,420 17.97 42,590 18.52 6,830 15.18 3,510 11.11 3,320 24.78 1,230 31.54 $ 2,090 22.00 (4,520) 50.20 x Accounts receivable (net) (3,880) 16.87 x Inventory 6,760 14.08 Property, plant, and equipment (net) 5,650 18.23 $ 4,010 3.61 Current liabilities (2,240) 17.23 Long-term debt 1,060 2.75 Common shares 0 0.00 Retained earnings 5,190 29.83 $ 4,010 3.61 2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) Answer is complete but not entirely correct. Percentage change 1.58 % increase 2-d. What was the change for the gross profit margin ratio? (Round intermediate calculations and final answer to 1 decimal place.) Answer is not complete. Percentage change % decrease