The financial statements for Tobolowsky Hats Inc. follow.

Tobolowsky Hats Inc.
Consolidated Balance Sheets
(In thousands)

LIABILITIES AND STOCKHOLDERS€™ EQUITY

Required:
1. Prepare common size income statements to be used for horizontal analysis for Tobolowsky for 2009 and 2011 (in percentage terms, rounded to two decimal places). You do not need to include the actual dollar amounts shown above.
2. Indicate why Tobolowsky€™s net income increased between 2009 and 2011.
3. Prepare common size balance sheets to be used for vertical analysis for 2011 and 2010 (in percentage terms, rounded to two decimal places). You do not need to include the actual dollar amounts shown above.
4. Determine whether the proportion of dollars invested in the various categories of assets has changed significantly between 2010 and 2011.
5. Determine whether the proportion of capital raised from the various liability categories and common stockholders€™ equity has changed significantly between 2010 and 2011.
6. How would you describe Tobolowsky€™s performance and financial position?

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Tobolowsky Hats Inc. Consolidated Income Statements In thousands except per share data) Year Ended December 31, 2010 2011 2009 4,102.7 $3,652,412 $3,178,569 evenues Costs and expenses: $2,256,236 $2,234,985 %1,952,123 $2,256,236 $2,234,985 $1,952,123 Cost of goods sold Selling and administrative Interest Other expenses (income) 598,236 31,853 102) $3,209,547 $2,923,821 $%2,582,110 $ 893,174 728,591 596,459 653,986 32,596 2,254 927,412 23,974 1925 Total costs and expenses Income before income taxes Income taxes Net income 247,692 183,456 645 482 545.136163,524 545,135 432,935 December 31, ASSETS 2011 2010 Current assets: Cash and equivalents 301,695 269,648 Accounts receivable, less allowance for doubtful accounts of $20,568 and $18,322 670,469 601,396 23,415 43,624 $1,640,599 583,152 452 376,700 162,325 29,158 2,208,782 604,236 469,582 24,397 36,478 1 404,341 $501,239 1148,231] 353,008 127,695 23,598 $1,908,642 Inventories Deferred income taxes Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Goodwill Other assets Total assets Current liabilities: $63,169 112,596 128,696 143,874 23,541 471,876 16,254 33,489 46,685 0 200 568,504 $5,665 110,423 139,364 133,569 38,972 427,993 83,456 31,238 27,434 Current portion of long-term debt Nołes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Noncurrent deferred income taxes Other noncurrent liabilities Commitments and contingencies Redeemable preferred stock Total liabilities Stockholders' equity: 200 $ 570,321 Common stock at stated value: Class A convertible-27,723 and 25,832 shares outstanding Class B-49,756 and 47,652 shares outstanding Capital in excess of stated value Treasury stock [common at cost) Retained earnings $164 3,152 110,596 8,741) 1,535,107 $1,640,278 $2,208,782 175 3,120 96,546 7,859 1,246,339 $1,338,321 $1,908,642 Total stockholders' equity Total liabilities and stockholders' equity