PA13-1 (Algo) Analyzing Financial Statements Using Horizontal Analyses [LO 13-2, 13-5) Pinnacle Plus declared and paid a cash dividend of $7,300 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Required: 1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. 2-a. Which account increased by the largest dollar amount? 2-b. Which account increased by the largest percentage? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 2B Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. (Decreases indicated by a minus sign. Round percentage values to 1 decimal place.) PINNACLE PLUS Horizontal Analysis PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus the Previous year) Amount Percentage Current Year Previous Year Income Statement Sales Revenue $ 103,900 % 117,000 $ 53,400 Cost of Goods Sold 48,700 Gross Profit 63,600 55,200 39,500 34,750 Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) 4,700 19,400 4,700 15,750 5,820 13,580 $ 4,725 11,025 Net Income $ % Balance Sheet Balance Sheet Cash $ 74,612 $ % 18,400 25,700 Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets 40,900 10,600 39,400 108,500 199,400 95,700 214,412 $ $ % $ 43,400 $ 35,700 % 2,532 1,500 Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity 47,000 92,932 47,000 84,200 87,000 34,480 214,412 87,000 28,200 199,400 $ $ % Req 1 Req 2A Req 2B Which account increased by the largest dollar amount? Account Req 2B > Accounts Payable Accounts Receivable, Net Cash Common Stock Req 1 Req 2A Req 2B Which account increased by the largest percentage? Account Req 2B Accounts Payable Accounts Receivable, Net Cash Common Stock