Rundle Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Rundle Corporation's income statement components between the two years. (Negative amounts should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) Sales $ 1,299,000 $ 1,004,500 29.3 % Cost of goods sold 798,885 602,700 32.5 Gross margin 500,115 401 ,800 24.5 Operating expenses 305,000 199,000 Income before taxes 195,115 202,800 Income taxes 61,100 52,000 Net income (loss) $ 134,015 $ 150,800' Required Compute each income statement component for each of the two years as a percentage of sales. (Percentages may not add exactly due to rounding. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) Sales $ 995,500 % $ 1,081,000 % Cost of goods sold 547,525 598,600 Gross margin on sales 447,975 482,400 Operating expenses 130,300 151,200 Income before taxes 317,675 331,200 Income taxes 79,000 81,600 Net income $ 238,675 % $ 249,600 % 4 Income statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY 15 Income Statements Year 4 Year 3 points Sales $201, 600 $181, 600 Cost of goods sold 143, 300 121, 300 Selling expenses 20, 000 18, 000 Administrative expenses eat 'ZI 14, 400 Interest expense 3, 200 5, 200 Book Total expenses $178, 900 $158,900 Income before taxes 22, 700 22, 700 Income taxes expense OOT'9 3, 400 Hint Net income $ 16, 600 $ 19, 300 Required Print a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. References Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) FRANKLIN COMPANY Required A Required B Horizontal Analysis of Income Statements Percentage Change Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. (Percentages over Year 3 may not add exactly due to rounding. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as Sales % 23.4 ) . ) Cost of goods sold FRANKLIN COMPANY sesuedxe bullies Vertical Analysis of Income Statements Administrative expenses Percentage of Percentage of Interest expense Sales Year 4 Sales Year 3 Total expenses Sales % % Income before taxes Cost of goods sold Income taxes expense Selling expenses Net income (loss) % Administrative expenses Required A Required B > Interest expense Total expenses Income before taxes Income taxes expense Net income % % The balance sheet for Adams Corporation follows: Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity Required $ 247,999 766,999 $1,913,999 $ 157,999 443,999 699,999 413,999 $1,913,999 Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratio Selected data from Baird Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market Vear 3 $392,999 (19,699) $372,499 $477,999 Income Statement For the Vears Ended December 31 Net credit sales Net cash sales Net sales Cost of goods sold Selling, general, and administrative expenses Other expenses Total operating expenses Required a. Compute the accounts receivable turnover for Year 3. b. Compute the inventory turnover for Year 3. c. Compute the net margin for Year 2. Year 2 $371, 999 (14, 848) $356,169 $445,999 Year 3 $2,919,999 497,999 2,426,999 1,698,999 239,199 49,699 $1,587,799 (For all requirements, round your answers to 2 decimal places.) a. Accounts receivable turnover limes b. Inventory turnover limes 0. Net margin % Vear 2 $1, 769, 999 329,999 2,939,999 1,422,999 214,799 23,999 $1,669,669 On June 30, Year 3, Gibson Company's total current assets were $496,000 and its total current liabilities were $277,000. On July 1, Year 3, Gibson issued a short-term note to a bank for $41,200 cash. Required a. Compute Gibson's working capital before and after issuing the note. b. Compute Gibson's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Before the After the transaction transaction a. Working capital b Current ratio