Graces Art Shop, Inc., sells vintage books. The firms comparative income statement and balance sheet for the
Question:
INSTRUCTIONS
1. Prepare both a horizontal and a vertical analysis of the two statements. Carry all calculations to two decimal places, and then round to one place. (Leave all vertical analysis percentages unadjusted in this problem.)
2. Make written comments about any of the results that seem worthy of investigation.
Analyze: If Grace€™s Art Shop experiences the same growth in net sales in 2020 as was reported in 2019, what net sales can be projected?
Transcribed Image Text:
Grace's Art Shop, Inc. Comparative Income Statement For Years Ended December 31, 2019 and 2018 Amounts 2018 2019 Revenue Sales 276500 1500 12기5101010 225500 1500 224000 Less Sales Returns and Allowances Net Sales Cost of Goods Sold Merchandise Inventory, January 1 Net Purchases Total Merchandise Available for Sale Less Merchandise Inventory, December 31 |15000 155000 11기0101010 20000 150000 125000 20000 100000 120000 |15000 105000 119000 Cost of Goods Sold Gross Profit on Sales Operating Expenses Selling Expenses Sales Salaries Expenses Payroll Tax Expense–Selling Other Selling Expenses Total Selling Expenses 60000 50000 |5000| 2500 57500 2000 68000 General and Administrative Expenses Officers' Salaries Expense Payroll Tax Expense-Administrative Depreciation Expense Other General and Administrative Expenses Total General and Administrative Expenses Total Operating Expenses 45000 4500 5000 1200 55 700 12 3700 40000 4000 5000 1000 50000 107500 Net Income Before Income Taxes Income Tax Expense Net Income After Income Taxes | 1300 195 1 105 11500 17|25 9775 Grace's Art Shop, Inc. Comparative Balance Sheet December 31, 2019 and 2018 Amounts 2019 2018 Assets Current Assets Cash 28130 27000 20100이 30515 Accounts Receivable 25 olo Merchandise Inventory 15000 500 Prepaid Expenses Supplies 6 50 395 76 175 Total Current Assets 71265 Property, Plant, and Equipment 35000 5lolololol Land 35 5lolololol Building and Store Equipment Less Accumulated Depreciation-Bldg & Store Equip. Net Book Value-Building and Store Equipment Total Property, Plant, and Equipment 15000 35 ololol 110 lolo l0 40000 75000 146265 7lolololo Total Assets 146175 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Sales Tax Payable 7500 15 8500 970 Payroll Taxes Payable Interest Taxes Payable 350 6lolol Total Current Liabilities 110 121215 110 141210 Long-Term Liabilities Mortgage Payable Total Long-Term Liabilities Total Liabilities 기010100 69 000 69000 79225 80420 이0004 Stockholders' Equity Common Stock ($1 par, 20,000 shares authorized; 20,000 shares issued and outstanding) Paid-in Capital-Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity |2|010이 500 64 450 66950 |2|이0 500 6 33 45 65845 146265
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Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
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