C 21 Golden Corporation declared and paid $4,000 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Required: 1. Complete the horizontal analyses for each item in Golden Corporation's comparative financial statements. TIP: Calculate the increase (decrease) by subtracting the previous year from the current year. Calculate the percentage by dividing the amount of increase (decrease) by the previous year balance, 2-a. Use the horizontal (trend) analyses to identify the accounts where a large percentage change is accompanied by a small dollar change 2-b. Use the horizontal (trend) analyses to identify the accounts where a directional change in one account balance is inconsistent with the directional change in a related account balance. Complete this question by entering your answers in the tabs below. Reg ! Red 2A Reg 28 Complete the horizontal analyses for each item in Golden Corporation's comparative financial statements. TIP: Calculate the Increase (decrease) by subtracting the previous year from the current year. Calculate the percentage by dividing the amount of increase (decrease) by the previous year balance. (Decreases should be indicated by a minus sign. Round percentage values to i decimal place) values to 1 gecmai piace.) GOLDEN CORPORATION Horizontal Analysis Increase (Decrease) in Current (versus Previous) Amount Percentage Current Previous Income Statement % Sales revenue Cost of goods sold Gross profit Operating expenses Interest expense Income before income taxes Income tax expense Net income Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) $ 190,000 $ 172,000 115,000 104,000 75,000 68,000 55,300 51,400 3.700 3,500 16,000 13,100 5,500 4,000 10,500 $ 9,100 $ % S $ 2,500 20.000 41.000 7,000 22,000 36.000 43,000 47 000 Inventory Property and equipment (net) % % Current liabilities Note payable (long-term) Common stock (par $5) Additional paid-in capital Retained earnings 41,000 36,000 47,000 43,000 $ 110,500 $ 108,000 $ 17,000 $ 21,000 35,000 35,000 40,000 40,000 6,000 6,000 12,500 6,000 $ 110,500 $ 108,000 % He Use the horizontal (trend) analyses to identify the accounts where a large percentage change is accompanied by a small dollar change. (Select all that apply.) Sales revenue Cost of goods sold Operating expenses Interest expense Income tax expense Gross profit Net income Income before income taxes Cash Accounts receivable (net) Inventory Property and equipment (net) Current liabilities Note payable (long-term) Retained earnings Additional paid-in capital Common stock Use the horizontal (trend) analyses to identify the accounts where a directional change in one account balance is inconsistent with the directional change in a related account balance. (Select all that apply.) Sales revenue Cost of goods sold Operating expenses Interest expense Income tax expense Gross profit Net Income Income before income taxes Cash Accounts receivable (net) Inventory Property and equipment (net) Current liabilities Note payable (long-term) Retained earnings Additional paid in capital Common stock C 21 Golden Corporation declared and paid $4,000 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Required: 1. Complete the horizontal analyses for each item in Golden Corporation's comparative financial statements. TIP: Calculate the increase (decrease) by subtracting the previous year from the current year. Calculate the percentage by dividing the amount of increase (decrease) by the previous year balance, 2-a. Use the horizontal (trend) analyses to identify the accounts where a large percentage change is accompanied by a small dollar change 2-b. Use the horizontal (trend) analyses to identify the accounts where a directional change in one account balance is inconsistent with the directional change in a related account balance. Complete this question by entering your answers in the tabs below. Reg ! Red 2A Reg 28 Complete the horizontal analyses for each item in Golden Corporation's comparative financial statements. TIP: Calculate the Increase (decrease) by subtracting the previous year from the current year. Calculate the percentage by dividing the amount of increase (decrease) by the previous year balance. (Decreases should be indicated by a minus sign. Round percentage values to i decimal place) values to 1 gecmai piace.) GOLDEN CORPORATION Horizontal Analysis Increase (Decrease) in Current (versus Previous) Amount Percentage Current Previous Income Statement % Sales revenue Cost of goods sold Gross profit Operating expenses Interest expense Income before income taxes Income tax expense Net income Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) $ 190,000 $ 172,000 115,000 104,000 75,000 68,000 55,300 51,400 3.700 3,500 16,000 13,100 5,500 4,000 10,500 $ 9,100 $ % S $ 2,500 20.000 41.000 7,000 22,000 36.000 43,000 47 000 Inventory Property and equipment (net) % % Current liabilities Note payable (long-term) Common stock (par $5) Additional paid-in capital Retained earnings 41,000 36,000 47,000 43,000 $ 110,500 $ 108,000 $ 17,000 $ 21,000 35,000 35,000 40,000 40,000 6,000 6,000 12,500 6,000 $ 110,500 $ 108,000 % He Use the horizontal (trend) analyses to identify the accounts where a large percentage change is accompanied by a small dollar change. (Select all that apply.) Sales revenue Cost of goods sold Operating expenses Interest expense Income tax expense Gross profit Net income Income before income taxes Cash Accounts receivable (net) Inventory Property and equipment (net) Current liabilities Note payable (long-term) Retained earnings Additional paid-in capital Common stock Use the horizontal (trend) analyses to identify the accounts where a directional change in one account balance is inconsistent with the directional change in a related account balance. (Select all that apply.) Sales revenue Cost of goods sold Operating expenses Interest expense Income tax expense Gross profit Net Income Income before income taxes Cash Accounts receivable (net) Inventory Property and equipment (net) Current liabilities Note payable (long-term) Retained earnings Additional paid in capital Common stock
