The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data:

		Year 2				Year 1
Statement of Earnings
Sales revenue	$	288,950	*		$	245,000
Cost of sales		233,680				197,000
Gross margin		55,270				48,000
Operating expenses and interest expense		39,920				35,700
Earnings before income taxes		15,350				12,300
Income tax expense		4,130				3,100
Net earnings	$	11,220			$	9,200
Statement of Financial Position
Cash	$	4,780			$	9,600
Accounts receivable (net)		19,120				23,000
Inventory		49,060				43,000
Property, plant, and equipment (net)		43,150				36,500
	$	116,110			$	112,100
Current liabilities (no interest)	$	15,220			$	18,400
Non-current liabilities (10% interest)		40,670				37,400
Common shares (6,000 shares)		42,000				42,000
Retained earnings†		18,220				14,300
	$	116,110			$	112,100

*One-third was credit sales.
†During Year 2, cash dividends amounting to $7,300 were declared and paid.

Required:

1. Using the concept of horizontal analyis, complete the following columns for each item in the preceding comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places (i.e., 0.1243 should be entered as 12.43).):

2-a. By what amount did working capital change?

2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.)

2-c. What was the amount of cash collections from customers in year 2?

2-d. What was the percentage change for the markup realized on sales? (Round intermediate calculations and final answer to 1 decimal place.)

Answer rating: 100% (QA)

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