Req 1 Req 2A Req 2B Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) PINNACLE PLUS Horizontal Analysis Increase (Decrease) Current Year Previous Year in the Current year (versus Previous year) Amount Percentage Income Statement Sales Revenue $ 130,000 $ 113,000 17,000 15.0 Cost of Goods Sold 56,000 50,000 6,000 12.0 Gross Profit 74,000 63,000 11,000 17.5 Operating Expenses 31,000 29,000 2,000 6.9 Interest Expense 3,000 3,000 0 0.0 Income before Income Tax Expense 40,000 31,000 9,000 29.0 % Income Tax Expense (30%) 12,000 9,300 2,700 29.0 Net Income $ 28,000 $ 21,700 $ 6,300 29.0 di di di di di dididi % % % % % % % Balance Sheet Cash $ 76,900 $ 42,600 $ 43,960 132.0% Accounts Receivable, Net 19,000 12,000 7,000 58.3 % Inventory 24,000 36,000 (12,000) (33.3) % Property and Equipment, Net 94,000 100,000 (6,000) (6.0) % Total Assets $ 213,900 $ 181,000 $ 32,960 x 18.2 % Accounts Payable $ 46,000 $ 37,000 $ 9,000 24.3 % Income Tax Payable 3,000 1,500 1,560 X 86.7 % Notes Payable (long-term) Total Liabilities 30,000 30,000 0.0 % 79,000 68,500 10,560 15.5 % Common Stock (par $10) 86,000 86,000 0 0.0 % Retained Earnings 48,900 26,500 22,400 84.5 Total Liabilities and Stockholders' Equity $ 213,900 $ 181,000 $ 32,960 18.2 %