P12-1 Analyzing Comparative Financial Statements by Using Percentages LO12-5 The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Year 2 Year 1 Statement of Earnings Sales revenue Cost of sales 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) $ 324,420* $275,000 272,590 230,000 51,830 45,000 35, 110 31,600 16,720 13,400 5,130 $ 11,590 $ 9,500 3,900 $ 4,480 19, 120 54,760 36,650 $ 115,010 $ 9,000 23,000 48,000 31,000 $ 111,000 $ 10,760 Current liabilities (no interest) Non-current liabilities (108 interest) Common shares (6,000 shares) Retained earningst $ 13,000 39,660 38,600 42,000 42,000 22,590 17,400 $ 115,010 $ 111,000 *One-third was credit sales. During Year 2, cash dividends amounting to $6,400 were declared and paid. Required: 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).): Answer is complete but not entirely correct. Increase (Decrease) ( Year 2 over Year 1 Amount Percentage Statement of eamings: Sales revenue $ 49.420 42,590 6,830 3,510 18.00 X 19.00 X 15.00 X 11.00 X 25.00 X Cost of sales 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) 3.320 1.230 2.090 32.00 22.00 $ (4,520) (3.880) 6,760 5,650 4,010 (2.240) 1,060 (50.00) (17.00) 14.00 X 18.00 X 4.00 x (17.00) 3.00 $ oooo Current liabilities Long-term debt Common shares Retained earnings 5,190 4,010 30.00 4.00 X 2-a. By what amount did working capital change? Answer is complete and correct. Change in working capital $ 600 2-6. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) Answer is complete but not entirely correct. Percentage change 6.89 % decrease 2-c. What was the amount of cash collections from customers in year 2? Answer is complete but not entirely correct. Amount of cash inflow $ 216,280 2-d. What was the percentage change for the markup realized on sales? (Round intermediate calculations and final answer to 1 decimal place.) Answer is complete but not entirely correct