1(a). Compute the percentage change for the balance sheet. (Note: Enter a decrease as a negative number if applicable. Round all percentages to one decimal place.)

Score: 3/45

Kepler Company

Comparative Balance Sheets

1		This Year	Last Year	Percentage Change
2	Assets
3	Current assets:
4	Cash	$50,000.00	$100,000.00
5	Accounts Receivable, net	300,000.00	150,000.00
6	Inventory	600,000.00	400,000.00
7	Prepaid expenses	25,000.00	30,000.00
8	Total current assets	$975,000.00	$680,000.00
9	Property and equipment, net	125,000.00	150,000.00
10	Total assets	$1,100,000.00	$830,000.00
11	Liabilities and Stockholders Equity
12	Current liabilities:
13	Accounts payable	$400,000.00	$290,000.00
14	Short-term notes payable	200,000.00	60,000.00
15	Total current liabilities	$600,000.00	$350,000.00
16	Long-term bonds payable, 12%	100,000.00	150,000.00
17	Total liabilities	$700,000.00	$500,000.00
18	Stockholders equity:
19	Common stock (100,000 shares)	200,000.00	200,000.00
20	Retained earnings	200,000.00	130,000.00
21	Total liabilities and stockholders equity	$1,100,000.00	$830,000.00

Points:

1 / 15

1(b). Compute the percentage change for the income statement. (Note: Round all percentages to one decimal place.)

Score: 0/33

Kepler Company

Comparative Income Statements

1		This Year	Last Year	Percentage Change
2	Sales	$950,000.00	$900,000.00
3	Less: Cost of goods sold	(500,000.00)	(490,000.00)
4	Gross margin	$450,000.00	$410,000.00
5	Less operating expenses:
6	Selling and Administrative expenses	(275,000.00)	(260,000.00)
7	Operating income	$175,000.00	$150,000.00
8	Less:
9	Interest expense	(12,000.00)	(18,000.00)
10	Net income before taxes	$163,000.00	$132,000.00
11	Less:
12	Income taxes	(65,200.00)	(52,800.00)
13	Net income after taxes	$97,800.00	$79,200.00
14	Less:
15	Dividends	(27,800.00)	(19,200.00)
16	Net income, retained	$70,000.00	$60,000.00