Part A Baldwin Field Enterprises
Income Statement
For the Years Ended December 31, 2012 and 2011
	2012		2011
	Amount		Amount
Revenue from sales:
Sales	$86,000		$72,200
Less returns	2,900		1,200
NET SALES	$83,100		$71,000
Cost of goods sold:
Inventory, January 1	$22,000		$17,500
Purchases	38,000		35,000
Available for sale	$60,000		$52,500
Inventory, December 31	24,100		22,000
Cost of goods sold	$35,900		$30,500
Gross Profit	$47,200		$40,500
Operating expenses:
Salary	$11,200		$10,900
Rent	$7500		$6000
Advertising	1,400		1,200
Delivery	450		380
Depreciation	650		600
Equipment rental	350		420
Administrative	1,900		1,700
Miscellaneous	190		220
Total operating expenses	$23,640		$21,420
Income before tax	$23,560		$19,080
Income tax	2,000		2,100
NET INCOME	$21,560		$16,980

Assume that the beginning inventory was $18,000 in 2011 and $20,500 in 2012 and that the rent was $6,400 in 2011 and $8,800 in 2012. Compute the following amounts and percents to reflect the revised beginning inventory and rent numbers. Round to the nearest whole percent.

					Difference
	2012 Amount	2012 Percent	2011 Amount	2011 Percent	Amount	Percent
Gross profit	$_______	______%	$________	_______%	$_______	______%
Net income	$_______	______%	$________	_______%	$_______	______%

Part B

Show the changes to the cash and preferred stock amounts that would need to be made if Golden Gate Coffee Company had sold an additional $4,000 in preferred stock in 2012. Round percents to one decimal place.

Golden Gate Coffee Company
Balance Sheet
As of December 31,2012 and 2011
		2012			2011
		Amount			Amount
ASSETS
Current assets:
Cash	$	2,620,300		$	2,429,800
Accounts receivable		2,658,730			2,766,890
Inventory		835,600			742,000
Total current assets	$	6,114,630		$	5,938,690
Fixed assets:
Equipment	$	4,289,500		$	4,168,540
(Less depreciation)		735,000			576,080
Machinery net	$	3,554,500		$	3,592,460
Buildings		2,650,000			2,520,000
Land parcel holdings		987,500			876,500
Total fixed assets	$	7,192,000		$	6,988,960
TOTAL ASSETS	$	13,306,630		$	12,927,650
LIABILITIES
Current liabilities:
Accounts payable	$	2,750,000		$	2,800,000
Accrued payroll		98,720			82,420
Payroll taxes payable		27,468			25,687
Total current liabilities	$	2,876,188		$	2,908,107
Long-term liabilities:
Mortgages payable	$	3,580,000		$	3,710,500
Note payable long term		250,000			200,000
Total long term liabilities	$	3,830,000		$	3,910,500
Total liabilities	$	6,706,188		$	6,818,607
Shareholders' equity:
Common stock	$	4,850,000		$	4,600,000
Preferred stock		1,422,630			1,400,000
Retained earnings		327,812			109,043
Total shareholders' equity	$	6,600,442		$	6,109,043
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY	$	13,306,630		$	12,927,650

	Amount	Percent of total assets/ Percent of total liabilities and equity
Cash	$_____	____%
Preferred stock	$_____	____%