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

Required:

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

2. Does anything significant jump out at you from the year-over-year analyses?

Transcribed Image Text:

Increase (Decrease) 2017 over 2016 Amount Percentage 2017 2016 Income Statement $222,000 $185,000 Sales Revenue Cost of Goods Sold 127,650 111,000 Gross Profit 94,350 74,000 Operating Expenses 39,600 33,730 3,270 Interest Expense 4,000 37,000 Income before Income Tax Expense 50,750 11,100 Income Tax Expense (30%) 15,225 $ 35,525 $ 25,900 Net Income Balance Sheet $ 40,000 $ 38,000 Cash Accounts Receivable, Net 18,500 16,000 Inventory 25,000 22,000 Property and Equipment, Net 127,000 119,000 $210,500 $195,000 Total Assets $ 27,000 $ 25,000 Accounts Payable 2,800 Income Tax Payable 3,000 Note Payable, Long-Term 92,200 75,500 Total Liabilities 105,500 120,000 25,000 Contributed Capital (25,000 shares outstanding) 25,000 Retained Earnings 80,000 50,000 $210,500 $195,000 Total Liabilities and Shareholders' Equity