P12-1 (Algo) Analyzing Comparative Financial Statements by Using Percentages (Horizontal Analysis) LO12-6 The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross profit Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Long-term debt (interest rate: 10%) Connon shares (6,000 shares) Retained earningst 321,700 270,000 Year 2 Year 1 $379,790 $320,000 58,090 50,000 39,220 35,000 18,870 15,000 6,690 5,100 $ 12,180 $ 9,900 $ 4,170 $ 8,200 15,990 46,050 27,430 19,000 40,000 23,000 $ 93,640 $ 90,200 $ 15,350 $ 18,500 36,810 35,900 24,000 24,000 17,480 11,800 $ 93,640 $ 90,200 One-third was credit sales. During Year 2, cash dividends amounting to $6,500 were declared and paid. Required: h. Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places, i.e., 0.1243 should be entered as 12.43.): Answer is not complete. Increase (Decrease) Year 2 over Year 1 Amount Percentage Statement of eamings: Sales revenue $379,790 100.00 Cost of sales 321,700 85.00 Gross margin 58,090 Operating expenses and interest expense 39.220 10.33 Eamings before income taxes 18.870 Income tax expense Net earnings 18,870 Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities Long-term debt Common shares Retained earnings 0 2-a. By what amount did working capital change? Change in working capital 0 2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) Percentage change % Percentage change % 2-c. What was the amount of cash collections from customers in year 2? Amount of cash inflow 2-d. What was the change for the gross profit margin ratio? (Round intermediate calculations and final answer to 1 decimal place.) Percentage change %