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, 20212015 ($ thousands) 2021 2020 2019 2018

Selected comparative financial statements of Haroun Company follow.

HAROUN COMPANY
Comparative Income Statements
For Years Ended December 31, 20212015
($ thousands) 2021 2020 2019 2018 2017 2016 2015
Sales $ 1,392 $ 1,219 $ 1,109 $ 1,017 $ 949 $ 882 $ 723
Cost of goods sold 1,000 813 700 612 569 532 424
Gross profit 392 406 409 405 380 350 299
Operating expenses 297 233 213 157 137 135 112
Net income $ 95 $ 173 $ 196 $ 248 $ 243 $ 215 $ 187
HAROUN COMPANY
Comparative Year-End Balance Sheets
December 31, 20212015
($ thousands) 2021 2020 2019 2018 2017 2016 2015
Assets
Cash $ 96 $ 127 $ 132 $ 135 $ 141 $ 139 $ 143
Accounts receivable, net 693 728 659 505 445 422 297
Merchandise inventory 2,508 1,825 1,595 1,344 1,207 1,025 744
Other current assets 64 58 36 64 54 55 29
Long-term investments 0 0 0 198 198 198 198
Plant assets, net 3,069 3,057 2,674 1,508 1,559 1,385 1,189
Total assets $ 6,430 $ 5,795 $ 5,096 $ 3,754 $ 3,604 $ 3,224 $ 2,600
Liabilities and Equity
Current liabilities 1,618 $ 1,361 $ 893 $ 743 $ 645 $ 610 $ 393
Long-term liabilities 1,727 1,504 1,464 680 694 752 564
Common stock 1,170 1,170 1,170 1,040 1,040 910 910
Other paid-in capital 293 293 293 260 260 228 228
Retained earnings 1,622 1,467 1,276 1,031 965 724 505
Total liabilities and equity $ 6,430 $ 5,795 $ 5,096 $ 3,754 $ 3,604 $ 3,224 $ 2,600

Required:

  1. Complete the below table to calculate the trend percents for all components of both statements using 2015 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?
  3. Complete the below table to calculate the trend percents for all components of comparative income statements using 2015 as the base year. Note: Round your percentage answers to 1 decimal place.

4.Complete the below table to calculate the trend percents for all components of comparative balance sheets using 2015 as the base year. Note: Round your percentage answers to 1 decimal place.

5.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?

image text in transcribedimage text in transcribedimage text in transcribed \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{15}{|c|}{ HAROUN COMPANY } \\ \hline \multicolumn{15}{|c|}{ Balance Sheet Trends } \\ \hline \multicolumn{15}{|c|}{ December 31, 2021-2015 } \\ \hline & \multicolumn{2}{|c|}{2021} & \multicolumn{2}{|l|}{2020} & \multicolumn{2}{|l|}{2019} & \multicolumn{2}{|l|}{2018} & \multicolumn{2}{|l|}{2017} & \multicolumn{2}{|l|}{2016} & \multicolumn{2}{|l|}{2015} \\ \hline \multicolumn{15}{|l|}{ Assets } \\ \hline Cash & & % & & % & & % & & % & & % & & % & 100.0 & % \\ \hline Accounts receivable, net & & & & & & & & & & & & & 100.0 & \\ \hline Merchandise inventory & & & & & & & & & & & & & 100.0 & \\ \hline Other current assets & & & & & & & & & & & & & 100.0 & \\ \hline Long-term investments & & & & & & & & & & & & & 100.0 & \\ \hline Plant assets, net & & & & & & & & & & & & & 100.0 & \\ \hline Total assets & & % & & % & & % & & % & & % & & % & 100.0 & % \\ \hline \multicolumn{15}{|l|}{ Liabilities and Equity } \\ \hline Current liabilities & & % & & % & & % & & % & & % & & % & 100.0 & % \\ \hline Long-term liabilities & & & & & & & & & & & & & 100.0 & \\ \hline Common stock & & & & & & & & & & & & & 100.0 & \\ \hline Other paid-in capital & & & & & & & & & & & & & 100.0 & \\ \hline Retained earnings & & & & & & & & & & & & & 100.0 & \\ \hline Total liabilities \& equity & & % & & % & & % & & % & & % & & % & 100.0 & 0% \\ \hline \end{tabular} Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income a 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

Step: 3

blur-text-image

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

Financial Accounting Theory And Analysis Text And Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

14th Edition

1119881226, 978-1119881223

More Books

Students also viewed these Accounting questions