The comparative financial statements for Golden Corporation, prepared at December 31, 2017, showed the following summarized data:

Required:

1. Complete the two final columns shown beside each item in Golden Corporation?s comparative financial statements. Round the percentages to one decimal place.?

TIP: Calculate the increase (decrease) by subtracting 2016 from 2017. Calculate the percentage by dividing the amount of increase (decrease) by the 2016 balance.

2. Is there anything significant that jumps out at you from the horizontal (trend) analyses? Explain.

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Increase (Decrease) 2014 over 2013 2017 2016 Percentage Amount Income Statement $ 165,000 $ 180,000 Sales revenue Cost of goods sold 110,000 100,000 Gross profit 70,000 65,000 50,400 Operating expenses 53,300 Interest expense 2,700 2,600 Income before income taxes 14,000 12,000 Income tax expense 4,000 3,000 $ 10,000 $ 9,000 Net income Balance Sheet $ 4,000 $ 8,000 Cash Accounts receivable (net) 19,000 23,000 Inventory 40,000 35,000 Property and equipment (net) 45,000 38,000 $ 108,000 $ 104,000 $ 19,000 $ 16,000 Current liabilities (no interest) 45,000 45,000 Long-term liabilities (6% interest) Common shares (par $5) 30,000 30,000 Additional paid-in capital 5,000 5,000 Retained earnings 12,000 5,000 $ 108,000 $ 104,000