Golden Corporation declared and paid $4,900 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 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. GOLDEN CORPORATION Horizontal Analysis Increase (Decrease) in Current (versus Previous) Current Previous Amount Percentage Income Statement Sales revenue Cost of goods sold $ 199,000 $ 178,300 107,600 119,500 Gross profit 79,500 70,700 Operating expenses 57,100 52,300 Interest expense 4,600 4,310 Income before income taxes 17,800 14,090 Income tax expense 6,850 4,900 Net income Balance Sheet 10,950 $ % 9,190 3,550 $ % Cash 7,400 Accounts receivable (net) 22,100 18,200 38,800 Inventory 36,900 Property and equipment (net) 34,000 43,800 $ 104,350 $ % 100,400 % 15,100 $ Current liabilities 17,200 Note payable (long-term) 54,000 54,000 Common stock (par $5) 21,000 21,000 Additional paid-in capital 4,100 4,100 Retained earnings 4,100 10,150 % $ 104,350 $ 100,400 Reg 1 Req 2A > %24 24 %24 Req 2A Req 2B Req 1 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 Req 2B Req 1 Req 2A 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