Question
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 | $ | 2,778 | $ | 2,433 | $ | 2,214 | $ | 2,029 | $ | 1,893 | $ | 1,760 | $ | 1,443 | |||||||
Cost of goods sold | 1,997 | 1,625 | 1,398 | 1,223 | 1,137 | 1,063 | 847 | ||||||||||||||
Gross profit | 781 | 808 | 816 | 806 | 756 | 697 | 596 | ||||||||||||||
Operating expenses | 595 | 465 | 427 | 315 | 273 | 269 | 224 | ||||||||||||||
Net income | $ | 186 | $ | 343 | $ | 389 | $ | 491 | $ | 483 | $ | 428 | $ | 372 | |||||||
HAROUN COMPANY | |||||||||||||||||||||
Comparative Balance Sheets | |||||||||||||||||||||
December 31, 20192013 | |||||||||||||||||||||
($ thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Assets | |||||||||||||||||||||
Cash | $ | 160 | $ | 211 | $ | 219 | $ | 224 | $ | 232 | $ | 229 | $ | 237 | |||||||
Accounts receivable, net | 1,146 | 1,204 | 1,090 | 836 | 736 | 697 | 492 | ||||||||||||||
Merchandise inventory | 4,147 | 3,019 | 2,638 | 2,223 | 1,997 | 1,696 | 1,230 | ||||||||||||||
Other current assets | 106 | 96 | 59 | 106 | 89 | 91 | 47 | ||||||||||||||
Long-term investments | 0 | 0 | 0 | 327 | 327 | 327 | 327 | ||||||||||||||
Plant assets, net | 5,075 | 5,055 | 4,422 | 2,493 | 2,579 | 2,292 | 1,967 | ||||||||||||||
Total assets | $ | 10,634 | $ | 9,585 | $ | 8,428 | $ | 6,209 | $ | 5,960 | $ | 5,332 | $ | 4,300 | |||||||
Liabilities and Equity | |||||||||||||||||||||
Current liabilities | $ | 2,673 | $ | 2,247 | $ | 1,475 | $ | 1,227 | $ | 1,064 | $ | 1,007 | $ | 649 | |||||||
Long-term liabilities | 2,857 | 2,488 | 2,421 | 1,124 | 1,149 | 1,244 | 933 | ||||||||||||||
Common stock | 1,935 | 1,935 | 1,935 | 1,720 | 1,720 | 1,505 | 1,505 | ||||||||||||||
Other paid-in capital | 484 | 484 | 484 | 430 | 430 | 376 | 376 | ||||||||||||||
Retained earnings | 2,685 | 2,431 | 2,113 | 1,708 | 1,597 | 1,200 | 837 | ||||||||||||||
Total liabilities and equity | $ | 10,634 | $ | 9,585 | $ | 8,428 | $ | 6,209 | $ | 5,960 | $ | 5,332 | $ | 4,300 | |||||||
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?
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