Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: 2015 2014 Income statement: Sales revenue $ 190,300

The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data:

2015 2014
Income statement:
Sales revenue $ 190,300 * $ 167,400
Cost of goods sold 112,500 100,600
Gross profit 77,800 66,800
Operating expenses and interest expense 57,000 54,000
Pretax income 20,800 12,800
Income tax 6,240 3,840
Net income $ 14,560 $ 8,960
Balance sheet:
Cash $ 5,100 $ 5,500
Accounts receivable (net) 15,000 17,900
Inventory 40,400 32,500
Operational assets (net) 46,600 36,100
$ 107,100 $ 92,000
Current liabilities (no interest) $ 14,700 $ 15,700
Long-term liabilities (10% interest) 44,300 44,300
Common stock (par $5) 28,200 28,200
Retained earnings 19,900 3,800
$ 107,100 $ 92,000
*One-third was credit sales.

10.

value: 1.00 points

Required information

Required:
1.

Complete the following columns for each item in the preceding comparative financial statements: (Round your percentage answers to 2 decimal places.(i.e., 0.1234 should be entered as 12.34). Decreases should be indicated by a minus sign.)

PRINCE COMPANY
Income Statement
At December 31, 2015
Increase (Decrease)
2015 over 2014
Amount Percent
Sales revenue %
Cost of goods sold %
Gross profit %
Operating expenses and interest expense %
Pretax income %
Income tax %
Net income %
PRINCE COMPANY
Balance Sheet
At December 31, 2015
Increase (Decrease)
2015 over 2014
Amount Percent
Cash %
Accounts receivable (net) %
Inventory %
Operational assets (net) %
$0 %
Current liabilities (no interest) %
Long-term liabilities (9% interest)
Common stock (par $5)
Retained earnings %
$0 %

By what amount did working capital change?
Working capital change ?

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

More Books

Students also viewed these Accounting questions

Question

How is cost depletion different from percentage depletion?

Answered: 1 week ago