Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 20192013 ($ thousands) 2019 2018 2017 2016

Selected comparative financial statements of Haroun Company follow.

HAROUN COMPANY
Comparative Income Statements
For Years Ended December 31, 20192013
($ thousands) 2019 2018 2017 2016 2015 2014 2013
Sales $ 1,694 $ 1,496 $ 1,370 $ 1,264 $ 1,186 $ 1,110 $ 928
Cost of goods sold 1,246 1,032 902 802 752 710 586
Gross profit 448 464 468 462 434 400 342
Operating expenses 330 256 234 170 146 144 118
Net income $ 118 $ 208 $ 234 $ 292 $ 288 $ 256 $ 224
HAROUN COMPANY
Comparative Balance Sheets
December 31, 20192013
($ thousands) 2019 2018 2017 2016 2015 2014 2013
Assets
Cash $ 58 $ 78 $ 82 $ 84 $ 88 $ 86 $ 89
Accounts receivable, net 490 514 466 360 318 302 216
Merchandise inventory 1,838 1,364 1,204 1,032 936 810 615
Other current assets 36 32 14 34 28 28 9
Long-term investments 0 0 0 146 146 146 146
Plant assets, net 2,020 2,014 1,752 944 978 860 725
Total assets $ 4,442 $ 4,002 $ 3,518 $ 2,600 $ 2,494 $ 2,232 $ 1,800
Liabilities and Equity
Current liabilities $ 1,220 $ 1,042 $ 718 $ 614 $ 546 $ 522 $ 282
Long-term liabilities 1,294 1,140 1,112 570 580 620 400
Common stock 1,000 1,000 1,000 850 850 650 650
Other paid-in capital 250 250 250 170 170 150 150
Retained earnings 678 570 438 396 348 290 318
Total liabilities and equity $ 4,442 $ 4,002 $ 3,518 $ 2,600 $ 2,494 $ 2,232 $ 1,800

Required: 1. Complete the below table to calculate the trend percents for all components of both statements using 2013 as the base year. 2. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did inventory increase over this period?

Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did inventory increase over this period?

(a) Did sales grow steadily over this period?
(b) Did net income as a percent of sales grow over the past four years?
(c) Did inventory increase over this period?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Custom Edition For University Of Central Florida From Managerial Accounting

Authors: Karen Wilken Braun, Wendy Tietz

3rd Edition

1269451839, 978-1269451833

More Books

Students also viewed these Accounting questions

Question

Consistently develop management talent.

Answered: 1 week ago

Question

Create a refreshed and common vision and values across Europe.

Answered: 1 week ago

Question

Provide the best employee relations environment.

Answered: 1 week ago