The condensed statements of Falcon Hill Company follow:

\section*{Required}
1. Calculate each year's current ratio.
2. Express the income statement data in common-size percentages.
3. Express the balance sheet data in trend percentages with 1989 as the base year.
4. Comment on any significant relationships revealed by the ratios and percentages.

Transcribed Image Text:

Sales FALCON HILL COMPANY Comparative Income Statement For Years Ended December 31, 1991, 1990, and 1989 (in $000) Cost of goods sold. Gross profit from sales. Selling expenses. Administrative expenses Total expenses Income before taxes. State and federal income taxes. Net income. 1991 1990 1989 $62,000 $57,000 $47,000 43,883 39,330 $18,117 $17.670 $ 8,915 $ 8,392 6,510 $15,425 6,247 $ 2,692 700 $ 1,992 $ 2,243 $14,639 $ 3,031 788 31,654 $15.346 $ 7,280 5,310 $12,590 $ 2,756 715 $ 2,041