Question

($ thousands) Sales Cost of goods sold Gross profit Operating expenses Net income HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2019-2013 2019 2018 2017 2016 2015 2014 2013 $1,536 $1,345 $1,224 $1,122 $1,047 $ 974 $ 798 1. 104 628 587 468 387 330 258 236 151 149 124 $ 216 $ 272 268 $ 238 $ 206 HAROUN COMPANY Comparative Balance Sheets December 31, 2019-2013 2019 2018 2017 2016 2015 2014 2013 $ 96 693 2,508 64 ($ thousands) Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity $ 127 728 1,825 58 0 3,057 $5,795 $ 132 659 1,595 36 0 2,674 $5,096 $ 135 505 1,344 64 19 B 1,508 $3,754 $ 141 $ 139 $ 143 445 422 297 1,207 1,025 744 54 55 198 19A 198 1,559 1,3851, 189 $3,604 $3,224 $2,600 29 3,069 $6,430 $1,618 1,727 1,170 293 1,622 $6,430 $1,361 1,504 1,170 293 1,467 $5,795 $ 893 1,464 1,170 293 1,276 $5,096 $ 743 6 80 1,040 260 1,031 $3,754 $ 645 694 1,040 260 965 $3,604 $ 610 752 910 228 724 $3,224 $ 393 564 910 228 505 $2,600 Required: 1. Complete the below table to calculate the trend percents for all components of both statements using 2013 as the base year. 2. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did inventory increase over this period? Complete the below table to calculate the trend percents for all components of comparative income statements using 2013 as the base year. (Round your percentage answers HAROUN COMPANY Income Statement Trends For Years Ended December 31, 2019-2013 2018 2017 2016 2019 2015 2014 Sales 2013 100.0 % 100.0 100.0 Cost of goods sold Gross profit Operating expenses Net income 100.0 100.0 % Complete the below table to calculate the trend percents for all components of comparative balance sheets using 2013 as the base year. (Round your percentage answers to 1 HAROUN COMPANY Balance Sheet Trends December 31, 2019-2013 2017 2016 2019 2018 2015 2014 2013 % % % 100.0% 100.0 100.0 100.0 Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term liabilities Common stock Other paid-in capital 100.0 100.0 % % % % % % 100.0 % 100.0 % 100.0 100.0 100.0 Retained earnings 100.0 Total liabilities & equity 100.0 %

Answer 1

(1)

HAROUN COMPANY
Income Statement Trends
For year ended December 31, 2019-2013
Particulars	2019	2018	2017	2016	2015	2014	2013
Sales	192.5%	168.5%	153.4%	140.6%	131.2%	122.1%	100 %
Cost of Goods Sold	235.9%	191.9%	165%	144.4%	134,2%	125.4%	100 %
Gross profit	131.9%	135.5%	137%	135.2%	127%	117.3%	100 %
Operating Expenses	265.3%	208.1%	190.3%	140.3%	121.8%	120.2%	100 %
Net income	50%	91.8%	104.9%	132.1%	130.1%	115.5%	100 %

HAROUN COMPANY
Balance Sheet Trends
December 31, 2019-2013
Particulars	2019	2018	2017	2016	2015	2014	2013
Assets
Cash	67.1%	88.8%	92.3%	94.4%	98.6%	97.2%	100 %
Accounts receivable	233.3%	245.1%	221.9%	170.0%	149.8%	142.1%	100 %
Merchandise Inventory	337.1%	245.3%	214.4%	180.6%	162.2%	137.8%	100 %
Other current asset	220.7%	200%	124.1%	220.7%	186.2%	189.7%	100 %
Long term investment	0%	0%	0%	100%	100%	100%	100%
Plant Asset	258.1%	257.1%	224.9%	126.8%	131.1%	116.5%	100%
Total Asset	247.3%	222.9%	196%	144.4%	138.6%	124%	100 %
Liabilities & Equity
Current Liabilities	411.7%	346.3%	227.2%	189.1%	164.1%	155.2%	100%
Long term Liabilities	306.2%	266.7%	259.6%	120.1%	123.1%	133.3%	100%
Common Stock	128.6%	128.6%	128.6%	114.3%	114.3%	100%	100 %
Other paid in capital	128.5%	128.5%	128.5%	114.1%	114.1%	100%	100%
Retained earning	321.2%	290.5%	252.7%	204.2%	191.1%	143.4%	100%
Total Liabilities & Equity	247.3%	222.9%	196%	144.4%	138.6%	124%	100%

(2)

(a) yes the sales has grown steadily over the period.

(b) No, the net income as percentage of sales has been declined in last four years

(c) Yes, the inventory has increased over this period.