Exercise 14.7 Trend Percentages (LO14.1) Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: Sales Cash Accounts receivable, net Inventory Total current assets Current liabilities Year 1 $4,632,920 $ 99,939 416,866 812,089 $1,328,894 $ 384,054 Year 2 $4,740,300 $ 103,836 418.885 880,949 $1,402.870 $ 336,070 Year 3 $5,078,888 $ 101,883 439,253 829,395 $1,370,451 $ 335,948 Year 4 $5,536, 520 $ 74,048 505,824 895, 548 $1,475,420 $ 332,686 Years $5,636,180 $ 73,772 565, 338 983, 436 $1,542,546 $ 392,877 Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Year 1 Year 2 Year 3 Year 4 Year 5 Sales Current assets Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percenta answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Year 1 Year 2 Year 3 Year 4 Year 5 % % 95 % 96 Sales Current assets Cash Accounts receivable Inventory Total current assets Current liabilities 95 9 Exercise 14-1 Common-Size Income Statement (LO14-1) A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $7,330,000 $5,570, 800 Cost of goods sold 4,660, eee 3,586, eee Gross margin 2,678,000 2,264,800 Selling and administrative expenses : Selling expenses 1,391, eee 1,081,500 Administrative expenses 708,5ee 616, Total expenses 2.899, 5ee 1,697,500 Het operating income 57e, see 367, 300 Interest expense 96,000 88,000 Net income before taxes $ 474,5ee 5 279, 300 Members of the company's board of directors are surprised to see that net income increased by only $195,200 when sales increased by $1759,200 Required: Members of the company's board of directors are surprised to see that net income increased by only $195,200 when sales increased by $1759,200 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place 0.1234 should be entered as 12.3).) This Year Last Year Sales 9. 96 Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 90 26 90 my work Exercise 14-2 Financial Ratios for Assessing Liquidity (L014-2] Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $28. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,200 10,900 12.100 670 24.87 $ 1,380 7,700 12,200 590 21.070 Assets Current assets! Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity 9.380 9.300 45,392 55,692 $80,562 35, 226 45,026 $66,896