The comparative financial statements prepared at December 31, 2010, for Pinnacle Plus showed the following summarized data:

One-half of all sales are on credit.
During 2010, cash dividends amounting to $6,600 were declared and paid.

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. Does anything significant jump out at you from the horizontal analyses?

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Increase (Decrease) 2010 over 2009 Percentage 2010 2009 Amount Income Statement Sales Revenue* $110,000 $ 99,000 Cost of Goods Sold 52,000 48,000 Gross Profit 58,000 51,000 Operating Expenses 36,000 33,000 Interest Expense 4,000 4,000 Income before Income Tax Expense 18,000 14,000 Income Tax Expense (30%) 5,400 4,200 Net Income $ 12,600 $ 9,800 Balance Sheet Cash $ 49,500 $ 18,000 Accounts Receivable, Net 37,000 32,000 Inventory 25,000 38,000 Property and Equipment, Net Total Assets Accounts Payable 95,000 105,000 $206,500 $193,000 $ 42,000 $ 35,000 Income Tax Payable 1,000 500 Note Payable, Long-Term 40,000 40,000 Total Liabilities 83,000 75,500 Common Stock (par $10) 90,000 90,000 Retained Earnings 33,500 27,500 Total Liabilities and Stockholders' Equity $206,500 $193,000