Pinnacle Plus declared and paid a cash dividend of $6,600 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information:

Required:

1. Complete the two final columns shown beside each item in Pinnacle Plus’s comparative financial statements. Round the percentages to one decimal place.

2. Which account increased by the largest dollar amount? Which account increased by the largest percentage?

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Increase (Decrease) in Current (versus Previous) Current Previous Amount Percentage Income Statement Sales Revenue $110,000 $ 99,000 Cost of Goods Sold 52,000 48,000 Gross Profit 58,000 51,000 Operating Expenses Interest Expense 36,000 33,000 4,000 4,000 Income before Income Tax Expense Income Tax Expense (30%) 18,000 5,400 14,000 4,200 Net Income $ 12,600 $ 9,800 Balance Sheet $ 69,500 $ 38,000 12,000 38,000 Cash Accounts Receivable, Net 17,000 25,000 Inventory Property and Equipment, Net 95,000 105,000 Total Assets $206,500 $193,000 Accounts Payable Income Tax Payable Note Payable (long-term) $ 42,000 1,000 40,000 $ 35,000 500 40,000 Total Liabilities 83,000 75,500 Common Stock (par $10) Retained Eamings 90,000 33,500 90,000 27,500 Total Liabilitles and Stockholders' Equity $206,500 $193,000