The comparative financial statements prepared at December 31Year 2for Goldfish Company showed the following summar

Year 2

Year 1

Statement of Earnings

Sales revenue

Cost of sales Gross margin

Operating

expenses and interest expense

Earnings before income taxes

Income tax expense

$253,510 $215,000

194,800 164,000

58,710

51,000 39,300

44,120

14,590 11,700

3,748

2,800

Net earnings Statement of Financial Position

$ 10,850

$ 8,900

Cash

Accounts receivable (net)

Inventory

Property, plant, and equipment (net)

$ 9,000

21,500

$ 4,480

17,870

45,630 44,920

40,000 38,000

$112,900

$108,500

$ 16,140

41,410 36,000

Current liabilities (no interest)

Non-current liabilities (10% interest)Common shares (6,000 shares)

Retained earnings!

$ 19,400

37,000 36,000

16,100

19,350

$112,900

$108,500

Required:

1Using the concept of horizontal analyis, complete the following columns for each item in the preceding comparati statements (Negative answers should be indicated by a minus signRound percentage answers to 2 decimal plac

should be entered as 12.43).:

5:56

Increase (Decrease)

Year 2 over Year 1

Amount

Percentage

Statement of earnings

Sales revenue

253,510

2,748.98

Cost of sales

194,800 58,710

10.38

Gross margin

Operating expenses and interest expense

Earnings before income taxes.

58,710

Income tax expense

Net earnings

$

58,710

Statement of financial position

Cash

Accounts receivable (net)

Inventory

Propertyplantand equipment (net)

$

Current liabilities

Long-term debt

Common shares

Retained earnings

$

0