Golden Corporation declared and paid $4,400 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data:

Required:

1. 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. 2-a. Use the horizontal (trend) analyses to identify the accounts where a large percentage change is accompanied by a small dollar change.
3. 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.

2 Reg 1 Req 24 Reg 28 eBook 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 1 decimal place.) Show less GOLDEN CORPORATION Horizontal Analysis Increase (Decrease) in Current (versus Previous) Current Previous Amount Percentage Income Statement Sales revenue $ 194,000 $ 174,800 Cost of goods sold 117,000 105,600 Gross profit 77,000 69,200 Operating expenses 56,100 51,800 Interest expense 4,100 3.880 Income before income taxes 16,800 13,540 Income tax expense 6,100 4,400 Net income $ 10,700 $ 9,140 % Balance Sheet Cash $ 2,800 $ 6.900 % Accounts receivable (net) 20,400 22,600 Inventory 38,300 36,400 Property and equipment (net) 44,800 36,500 $ 106,100 $ 102,400 Current liabilities $ 15,600 $ 18.200 Note payable (long-term) 49,000 49,000 Common stock (par 55) 28.000 26.000 Additional paid-in capital 4,600 4,600 Retained earnings 10.900 4,600 $ 106,100 $ 102,400 2 Check my work 2 Reg 1 Reg 2A Req 2B 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.). eBook 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 Check my work 2 Reg 1 Req 2A Req 2B 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.) eBook Sales revenue UCost 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