Information from Halloran Companys Income Statement and Balance Sheets for the years 20132017 is presented.

Questions

1. Use these statements to calculate trend percentages for all components of both statements using 2013 as the base year.
2. Prepare a memo to the CEO of Halloran company summarizing your findings about the financial health of the company, using your calculations from above as evidence to support your conclusions.

HALLORAN COMPANY Comparative Income Statements For Years Ended December 31, 20172013 ($ thousands) Sales Cost of goods sold Gross profit Operating expenses Net income 2017 2016 2015 2014 2013 $ 1,271 $ 1,122 $ 1,028 $ 948 $ 890 $ 935 $ 774 $ 677 $ 602 $ 564 $ 336 $ 348 $ 351 $ 347 $ 326 $ 248 $ 192 $ 176 $ 128 $ 110 89 $ 156 $ 176 $ 219 $ 216 HALLORAN COMPANY Comparative Balance Sheets December 31, 20172013 2017 2016 2015 2014 2013 ($ thousands) Assets Cash $ 58 $ 59 $ 62 $ 63 $ 66 $ 368 $ 386 $ 350 $ 270 $ 239 $ 1,379 $ 1,023 $ 903 $ 774 $ 702 $ 27 $ 24 $ 11 $ 26 $ 21 $ - $ - $ - $ 110 $ 110 $ 1,515 $ 1,511 $ 1,314 $ 708 $ 734 $ 3,346 $ 3,002 $ 2,639 $ 1,950 $ 1,871 Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity $ 915 $ 782 $ 539 $ 461 $ 410 $ 971 $ 855 $ 834 $ 428 $ 435 $ 750 $ 750 $ 750 $ 638 $ 638 $ 202 $ 188 $ 188 $ 128 $ 128 $ 509 $ 428 $ 329 $ 297 $ 261 $ 3,346 $ 3,002 $ 2,639 $ 1,950 $ 1,871