Tiger Audio declared and paid a cash dividend of $5,525 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information:

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. Which account increased by the largest dollar amount? Which account increased by the largest percentage?

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Increase (Decrease) in Current (versus Previous) Current Previous Amount Percentage Income Statement $222,000 127,650 Sales Revenue $185,000 Cost of Goods Sold 111,000 94,350 39,600 Gross Profit 74,000 33,730 Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) 4,000 3,270 50,750 15,225 37,000 11,100 Net Income $ 35,525 $ 25,900 Balance Sheet $ 38,000 $ 40,000 18,500 25,000 Cash 16,000 22,000 Accounts Receivable, Net Inventory Property and Equipment, Net 127,000 119,000 Total Assets $210,500 $195,000 Accounts Payable Income Tax Payable Note Payable (long-term) $ 27,000 3,000 75,500 $ 25,000 2,800 92,200 Total Liabilities 105,500 25,000 120,000 Common Stock (par $1) Retained Earnings 25,000 80,000 50,000 Total Liabilities and Stockholders' Equity $210,500 $195,000