HOMEWORK:

Instructions: Please provide the clear calculation and one paragraph of interpretation on each statement

Question 1 : Income Statement: (please use the common size to analyze income statement)

Question 2 : Balance Sheet (Please use Comparative analysis to analyze balance sheet).

SHARPE COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS As oF DECEMBER 31 Debit Balances 2012 2011 Cash Accounts Receivable Inventory Investments (Available-for-sale) Equipment Buildings Land 155,000 75,000 55,000 70,000 145,000 40,000 70,000 51,000 130,000 61,000 85,000 48,000 25,000 Totals 610.000 545,000 Credit Balances 10,000 8,000 Allowance for Doubtful Accounts Accumulated Depreciation-Equipment Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings 21,000 37,000 14,000 28,000 60,000 12,000 62,000 70,000 260,000 92,000 $610,000 Totals $545,000