Question
undefined Benson Inc.'s income statement and balance sheet are given below. a) Express this information as vertical trend percents. Please make sure your final answer(s)
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Benson Inc.'s income statement and balance sheet are given below. a) Express this information as vertical trend percents. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. (For example: 12.34%)
Benson Inc.Income Statement Vertical Trend Percentages (%) 201620152014201620152014Sales$1,190,000$991,000$927,000 Cost of goods sold927,000876,000824,000 Gross profit from sales263,000115,000103,000 Operating expenses137,000110,00090,000 Income before tax126,0005,00013,000 Income taxes expense37,0001,0003,000 Net income$89,000$4,000$10,000
Benson Inc.Balance Sheet Vertical Trend Percentages (%) 201620152014201620152014Cash$752,000$608,000$492,000 Accounts receivable, net518,000455,000426,000 Prepaid expenses244,000203,000188,000 Merchandise inventory131,000107,00091,000 Plant assets, net163,000153,000143,000 Total assets$1,808,000$1,526,000$1,340,000 Accounts payable$427,000$370,000$321,000 Long-term notes payable799,000698,000602,000 Share capital (100,000 issued)63,00054,00046,000 Retained earnings519,000404,000371,000 Total liabilities and equity$1,808,000$1,526,000$1,340,000
b) Assuming all other things are constant, indicate whether the vertical trend between sales and accounts receivable is favourable or unfavourable.
The vertical trend is(select one).
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