Question: The comparative financial statements prepared at December 31, 2014, for Goldfish Company showed the following summarized data: Required: 1. Complete the following columns for each
The comparative financial statements prepared at December 31, 2014, for Goldfish Company showed the following summarized data:
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Required:
1. Complete the following columns for each item in the preceding comparative financial statements:
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2. Answer the following:
a. By what amount did working capital change?
b. What was the percentage change in the average income tax rate?
c. What was the amount of cash inflow from revenues for 2014?
d. What was the percentage change for the average markup realized on sales?
2014 2013 Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Trade receivables (net) Inventory Property, plant, and equipment (net) $195,000 120.000 75,000 60,000 15,000 4,000 $11,000 $165,000 100.000 65,000 53.000 12,000 3,000 $ 9,000 $ 8,000 18,000 35,000 38,000 99,000 16,00019,000 39,000 30.000 11.000 $99,000 $ 4,000 15,000 40,000 45,000 $104,000 Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earnings 45.000 30,000 13.000 104,000 One-third was credit sales During 2014, cash dividends amounting to $9,000 were declared and paid Increase (Decrease) 2014 over 2013 Amount Percentage
