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Required information Skip to question [The following information applies to the questions displayed below.] The comparative financial statements prepared at December 31, 2015, for Prince
Required information
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[The following information applies to the questions displayed below.]
The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: |
2015 | 2014 | |||||
Income statement: | ||||||
Sales revenue | $ | 191,500 | * | $ | 168,900 | |
Cost of goods sold | 113,200 | 101,700 | ||||
Gross profit | 78,300 | 67,200 | ||||
Operating expenses and interest expense | 57,700 | 54,700 | ||||
Pretax income | 20,600 | 12,500 | ||||
Income tax | 6,180 | 3,750 | ||||
Net income | $ | 14,420 | $ | 8,750 | ||
Balance sheet: | ||||||
Cash | $ | 4,600 | $ | 6,600 | ||
Accounts receivable (net) | 15,100 | 16,300 | ||||
Inventory | 41,400 | 32,300 | ||||
Operational assets (net) | 46,700 | 37,600 | ||||
$ | 107,800 | $ | 92,800 | |||
Current liabilities (no interest) | $ | 15,800 | $ | 16,800 | ||
Long-term liabilities (10% interest) | 44,500 | 44,500 | ||||
Common stock (par $5) | 29,300 | 29,300 | ||||
Retained earnings | 18,200 | 2,200 | ||||
$ | 107,800 | $ | 92,800 | |||
*One-third was credit sales. |
2. | By what amount did working capital change? |
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