1. Prepare the common size statement of comprehensive income for both years
2. Prepare the cash flow statement for 2016
Use the following financial statements for The Potato Grow Company to answer the questions that follow. The company's tax rate 35%. A dividend of $40,000 was paid to shareholders in 2016. Statement of Financial Poaltion as of December 31 2015 2016 ASSET Current Assets Cash Account Receivable Inventory $43,720 $22,632 $46.168 $44,100 $27.700 $49,300 Fixed Assets Net Plant & Equipment TOTAL ASSETS $580,656 $642,150 LIABILITIES&OWNERS EQUITY Current Liabilities $38,640 $20,000 $19,286 $150,000 $50,000 $45,700 $18,000 $22,770 $170,000 $50.000 Accounts Payable Notes Payable Accruals Long-Term Debt Common Shares Retained Earnings TOTAL LIAB& OWNERS EQUITY $580,656 $642,150 Statement of Comprehensive Income 2015 $593.310 $353.986 $53.228 2016 $611.660 $366.996 Revenues Cost of Goods Sold Gencral and Administration Depreciation Earnings Before Interest & Taxes Interest axable Income Taxes Net Incoms $54.874 $53,7o0 $136.090 S23.860 $112.230o $23,144 $108,863 $70.76A $.72,950 Use the following financial statements for The Potato Grow Company to answer the questions that follow. The company's tax rate 35%. A dividend of $40,000 was paid to shareholders in 2016. Statement of Financial Poaltion as of December 31 2015 2016 ASSET Current Assets Cash Account Receivable Inventory $43,720 $22,632 $46.168 $44,100 $27.700 $49,300 Fixed Assets Net Plant & Equipment TOTAL ASSETS $580,656 $642,150 LIABILITIES&OWNERS EQUITY Current Liabilities $38,640 $20,000 $19,286 $150,000 $50,000 $45,700 $18,000 $22,770 $170,000 $50.000 Accounts Payable Notes Payable Accruals Long-Term Debt Common Shares Retained Earnings TOTAL LIAB& OWNERS EQUITY $580,656 $642,150 Statement of Comprehensive Income 2015 $593.310 $353.986 $53.228 2016 $611.660 $366.996 Revenues Cost of Goods Sold Gencral and Administration Depreciation Earnings Before Interest & Taxes Interest axable Income Taxes Net Incoms $54.874 $53,7o0 $136.090 S23.860 $112.230o $23,144 $108,863 $70.76A $.72,950