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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
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
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