Pinnacle Plus declared and paid a cash dividend of $5,900 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?

PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus the Previous year) Amount Percentage Current Year Previous Year Income Statement Sales Revenue $ % Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income 127,000 $ 55,400 71,600 32,500 3,300 35,800 10,740 25,060 $ 110,900 49,700 61,200 30,200 3,300 27,700 8,310 19,390 $ % Balance Sheet Cash $ $ % 80,012 18,400 24,300 94,300 217,012 $ $ % $ $ % Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $ 10) Retained Earnings Total Liabilities and Stockholders' Equity 45,400 2,652 33,000 38,500 11,400 36,600 101,500 188,000 36,700 1,500 33,000 71,200 90,000 26,800 188,000 81,052 90,000 45,960 217,012 $ $ %