PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus Previous year) Current Year Previous Year Amount Percentage Income Statement Sales Revenue $120,000 $106,000 % Cost of Goods Sold 54,000 49,000 Gross Profit 66,000 57,000 Operating Expenses 41,000 35,500 Interest Expense 5,000 5,000 Income before Income Tax Expense 20,000 16,500 Income Tax Expense (30%) 6,000 4,950 Net Income $14,000 $11,550 % Balance Sheet Cash $77,900 $43,000 % Accounts Receivable, Net 19,000 10,000 Inventory 26,000 40,000 Property and Equipment, Net 96,000 110,000 Total Assets $218,900 $203,000 % Accounts Payable $44,000 $36,000 % Income Tax Payable 3,000 1,500 Note Payable (long-term) 50,000 50,000 Total Liabilities 97,000 87,500 Common Stock (par $10) 87,000 87,000 Retained Earnings 34,900 28,500 Total Liabilities and Stockholders Equity $218,900 $203,000 % During the current year, cash dividends amounting to $7,600 were declared and paid.