PROBLEM 1-2 Calculation and Analysis of Trend Percents Selected comparative financial statements of Cohorn Company follow: COHORN COMPANY Comparative Income Statement ($000) For Years Ended December 31, 2000-2006 2005 2004 2003 $1,396 $1,164 932 702 Sales Cost of goods sold Gross profit. Operating expenses Net income 2006 $1,594 1,146 448 340 $ 108 464 266 $ 198 $1,270 802 468 244 $ 224 462 180 $ 282 2002 $1,086 652 434 156 $ 278 2001 $1,010 610 400 154 $ 246 2000 $828 486 342 128 $214 Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant and equipment, net Total assets... Liabilities and Equity Current liabilities Long-term liabilities Common stock Other contributed capital Retained earnings.... Total liabilities and equity.. COHORN COMPANY Comparative Balance Sheet (5000) December 31, 2000-2006 2005 2006 2004 2003 2002 $68 $88 $ 92 $98 480 504 456 308 1,738 1,264 1,104 932 836 46 42 24 44 38 0 0 136 136 0 2,120 2,114 $4,452 $4,012 $3,528 $2,600 $2,494 1,852 1,044 1,078 $ 94 350 2001 $ 96 292 710 38 136 960 $2,232 $1,120 $942 $618 $ 514 $ 446 $ 422 1,194 1,040 1,012 470 480 520 1,000 1,000 1,000 840 840 640 250 250 250 180 180 160 888 780 648 596 548 490 $4,452 $4,012 $3,528 $2,600 $2,494 $2,232 Required: a. Compute trend percents for the individual items of both statements using 2000 as the base year. b. Analyze and comment on the financial statements and trend percents from part a. 2000 $99 206 515 19 136 825 $1,800 $ 272 390 640 160 338 $1,800 CHECK 2006, total assets trend, 247.3%