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Pinnacle Plus declared and paid a cash dividend of $5,700 in the current year. Its comparative financial statements, prepared at December 31, reported the
Pinnacle Plus declared and paid a cash dividend of $5,700 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Required: 1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. 2-a. Which account increased by the largest dollar amount? 2-b. Which account increased by the largest percentage? Income Statement Horizontal Analysis Current Year Previous Year Increase (Decrease) in the Current year (versus Previous year) Amount Percentage Sales Revenue $ 129,000 $ 112,300 % Cost of Goods Sold 55,800 49,900 % Gross Profit 73,200 62,400 % Operating Expenses 31,500 29,400 % Interest Expense 3,100 3,100 % Income before Income Tax Expense 38,600 29,900 % Income Tax Expense (30%) 11,580 8,970 % Net Income $ 27,020 $ 20,930 % Balance Sheet Cash $ 77,520 $ 42,400 % Accounts Receivable, Net 18,800 11,800 % Inventory 24,100 36,200 % Property and Equipment, Net 94,100 100,500 % Total Assets $ 214,520 $ 182,900 % Accounts Payable $ 45,800 $ 36,900 Income Tax Payable 2,800 1,400 % % Notes Payable (long-term) 31,000 31,000 % Total Liabilities 79,600 69,300 % Common Stock (par $10) 87,000 87,000 % Retained Earnings 47,920 26,600 Total Liabilities and Stockholders' Equity $ 214,520 $ 182,900 % Req 1 Req 2A Req 2B Which account increased by the largest dollar amount? Account Req 1 Req 2A Req 2B Which account increased by the largest percentage? Account
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