Question
Golden Corporation declared and paid $3,900 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data:
Golden Corporation declared and paid $3,900 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 Corporations 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 the horizontal analyses for each item in Golden Corporations 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 1 decimal place.)
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