P12-1 Analyzing Comparative Financial Statements by Using Percentages LO12-5 The comparative financial statements prepared at December 31, 2017, for Goldfish Company showed the following summarized data: 2017 2016 Statement of Earnings Sales revenue Cost of sales $ 241,700* 181,850 $205,000 153,000 Gross margin Operating expenses and interest expense 59,850 45,510 52,000 40,500 Earnings before income taxes Income tax expense 14,340 3,610 11,500 2,700 Net earnings $ 10,730 $ 8,800 $ Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) 4,230 17,450 44,480 45,500 $ 8,500 21,000 39,000 38,500 $ 111,660 $107,000 Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst $ 13,780 43,150 30,000 24,730 $ 16,500 39,000 30,000 21,500 $ 111,660 $107,000 *One-third was credit sales. +During 2017, cash dividends amounting to $7,500 were declared and paid. 1. Complete the following columns for each item in the preceding 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).): Increase (Decrease) 2017 over 2016 Amount Percentage Statement of earnings: Sales revenue 17.90 Cost of sales 18.86 $ 36,700 28,850 7,850 5,010 2,840 15.10 12.37 24.70 910 33.70 $ 1,930 21.93 Gross margin 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) (4,270) (50.24) (16.90) 14.05 (3,550) 5,480 7,000 4,660 18.18 $ 4.36 Current liabilities (16.48) Long-term liabilities (2,720) 4,150 0 10.64 Common shares 0.00 Retained earnings 15.02 3,230 4,660 $ 4.36 2-b. What was the percentage change in the average income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) Percentage change % increase Only do this