Percent Change Analysis

Amaron Products
PERCENTAGE CHANGE CALCULATION AND ANALYSIS
INCOME STATEMENT	% Change Amaron	LINE BY LINE ANALYSIS COMPARED TO AMARON's % CHANGE IN SALES BETTER, SAME AS, WORSE than Amaron's % Change in Sales
Total sales	0.0%
Cost of goods sold	0.0%
Administrative expense	0.0%
Earnings before interest, taxes, depreciation & amortization (EBITDA)	0.0%
Depreciation	0.0%
Earnings before interest & taxes.(EBIT)	0.0%
Interest expense	0.0%
Earnings Before Taxes (EBT)	0.0%
Taxes	0.0%
Net income	0.0%
Dividends	0.0%
Additions to Retained Earnings	0.0%
BALANCE SHEET
ASSETS
Cash	0.0%
Accounts receivable	0.0%
Inventory	0.0%
Total Current Assets	0.0%
Net fixed assets	0.0%
TOTAL ASSETS	0.0%
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable	0.0%
Accruals	0.0%
Notes payable	0.0%
Total Current Liabilities	0.0%
Long-term debt	0.0%
TOTAL LIABILITIES	0.0%
Common stock	0.0%
Retained earnings*	0.0%
TOTAL STOCKHOLDERS' EQUITY	0.0%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	0.0%

PERCENT CHANGE ANALYSIS: On the % CHANGE worksheet in the CASE STUDY DATA SHEETS (Fall 2016).xlsx prepare the Percent Change calculations between 2015 and 2016 for all indicated Income Statement and Balance Sheet items.

a. Complete a Line-by-Line Analysis of indicated income statement and balance sheet items compared to Amaron's own PERCENT CHANGE IN SALES to determine if each statement item is BETTER, SAME AS, or WORSE than Amaron's own Percent Change in Sales.

INCOME STATEMENT
	2015	2016
Total sales	$50,037,400	$55,351,400
Cost of goods sold	38,028,500	42,200,400
Administrative expense	5,103,800	5,573,300
Earnings before interest, taxes, depreciation & amortization (EBITDA)	6,905,100	7,577,700
Depreciation	1,124,700	1,574,100
Earnings before interest & taxes.(EBIT)	5,780,400	6,003,600
Interest expense	981,500	1,223,200
Earnings Before Taxes (EBT)	4,798,900	4,780,400
Taxes	1,679,600	1,529,800
Net income	3,119,300	3,250,600
Dividends	623,900	650,100
Additions to Retained Earnings	2,495,400	2,600,500

BALANCE SHEET
	2015	2016
ASSETS
Cash	$650,500	$716,900
Accounts receivable	8,339,600	10,015,900
Inventory	12,676,200	18,456,500
Total Current Assets	21,666,300	29,189,300
Net Fixed Assets	23,827,400	25,805,100
TOTAL ASSETS	$45,493,700	$54,994,400
LIABILITIES & STOCKHOLDER'S EQUITY
Accounts payable	$3,138,000	$4,233,200
Accruals	1,701,100	1,833,800
Notes payable	5,687,100	8,687,100
Total current liabilities	10,526,200	14,754,100
Long-term debt	9,065,300	12,065,300
TOTAL LIABILITIES	19,591,500	26,819,400
Common stock	2,500,000	2,500,000
Retained earnings*	23,402,200	25,675,000
TOTAL STOCKHOLDERS' EQUITY	25,902,200	28,175,000
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY	$45,493,700	$54,994,400

ADDITIONAL INFORMATION
Information	2015	2016
Growth rate in sales	12.80%	10.62%
Depreciation as a % of net fixed assets	5.39%	6.61%
Short-term interest expense	5.53%	5.75%
Long-term interest expense	6.75%	7.02%
Income tax rate	35.00%	32.00%
Dividend payout ratio	20.00%	20.00%
Fixed assets as a percent of total capacity.	92.00%	85.00%
End of year stock price	$27.67	$26.54
Number of common shares outstanding	2,500,000	2,500,000