Question

Required information The following information applies to the questions displayed below.] The comparative financial statements for Prince Company are below: Year 2 Year 1 $191,500 112,400 79,100 57,700 21,400 6,420 $ 14,980 $167,300 102,000 65,300 54,700 10,600 3,180 $ 7,420 Income statement: Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet: Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (10 interest) Common stock ($5 par value, 5,300 shares outstanding) Retained earnings Total liabilities and stockholders' equity $ 5,900 14,800 40,200 46,700 $107,600 $ 14,400 44,400 26,500 22,300 $107,600 $ 6,100 17,300 32,800 37,300 $ 93,500 $ 15,400 44,400 26,500 7,200 $ 93,500 Required: 1. Complete the following columns for each item in the preceding comparative financial statements: (Enter your answer as a percentage rounded to 2 decimal places (ie. 0.1234 should be entered as 12.34). Decreases should be indicated by a minus sign.) PRINCE COMPANY Income Statement Increase (Decrease) from Year 1 to Year 2 Amount Percent Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income PRINCE COMPANY Balance Sheet Increase (Decrease) from Year 1 to Year 2 Amount Percent Cash Accounts receivable (net) Inventory Property and equipment (net) Total Assets Current liabilities (no interest) Long-term liabilities (10% interest) Common stock ($5 par value, 5,300 shares outstanding) Retained earnings Total liabilities and stockholders' equity

Answer 1

Income Statement
	Increase (Decrease) From Year 1 to Year 2
	Amount	Percent
Sales Revenue	$24,200.00	14.47%
Cost of goods sold	$10,400.00	10.20%
Gross Profit	$13,800.00	21.13%
Operating Expenses and interest expense	$   3,000.00	5.48%
Pretax Income	$10,800.00	101.89%
Income Tax	$   3,240.00	101.89%
Net Income	$   7,560.00	101.89%

Prince Company
Balance Sheet
	Increase (Decrease) From Year 1 to Year 2
	Amount	Percent
Cash	$         (200.00)	-3.28%
Account Receivable( Net)	$      (2,500.00)	-14.45%
Inventory	$       7,400.00	22.56%
Property & Equipment	$       9,400.00	25.20%
Total Asset ( the Base Amount)	$14,100.00	15.08%
Current Liabilities	$      (1,000.00)	-6.49%
Long term Liabilities ( 10% Interest)	$                -	0.00%
Common Stock ($5 par Value, 5300 Share Outstanding)	$                -	0.00%
Retained Earning	$     15,100.00	209.72%
Total liabilities and Owner 's Equity ( The Base Amount)	$     14,100.00	15.08%

Working:

Income Statement
	Increase (Decrease) From Year 1 to Year 2
	Amount	Percent
Sales Revenue	=191500-167300	=(191500-167300)/167300
Cost of goods sold	=112400-102000	=(112400-102000)/102000
Gross Profit	(79100-65300)	=(79100-65300)/65300
Operating Expenses and interest expense	=57700-54700	=(57700-54700)/54700
Pretax Income	(21400-10600)	=(21400-10600)/10600
Income Tax	=6420-3180	=(6420-3180)/3180
Net Income	(14980-7420)	=(14980-7420)/7420

Prince Company
Balance Sheet
	Increase (Decrease) From Year 1 to Year 2
	Amount	Percent
Cash	=5900-6100	=(5900-6100)/6100
Account Receivable( Net)	=14800-17300	=(14800-17300)/17300
Inventory	=40200-32800	=(40200-32800)/32800
Property & Equipment	=46700-37300	=(46700-37300)/37300
Total Asset ( the Base Amount)	=107600-93500	=(107600-93500)/93500
Current Liabilities	=14400-15400	=(14400-15400)/15400
Long term Liabilities ( 10% Interest)	=44400-44400	=(44400-44400)/44400
Common Stock ($5 par Value, 5300 Share Outstanding)	=26500-26500	=(26500-26500)/26500
Retained Earning	=22300-7200	=(22300-7200)/7200
Total liabilities and Owner 's Equity ( The Base Amount)	=107600-93500	=(107600-93500)/93500