Question
undefined Question 2 [30 points] Oppong Corporation's income statement and balance sheet are given below. a) Express this information as vertical trend percents. Please make
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Question 2 [30 points]
Oppong Corporation'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%)
Oppong CorporationIncome Statement Vertical Trend Percentages (%) 201620152014201620152014Sales$1,280,000$1,027,000$913,000100100100Cost of goods sold898,000763,000699,000 Gross profit from sales382,000264,000214,000 Operating expenses228,000190,000159,000 Income before tax154,00074,00055,000 Income taxes expense46,00022,00016,000 Net income$108,000$52,000$39,000
Oppong CorporationBalance Sheet Vertical Trend Percentages (%) 201620152014201620152014Cash$88,000$80,000$75,000 Accounts receivable, net587,000512,000414,000 Prepaid expenses433,000348,000327,000 Merchandise inventory334,000300,000280,000 Plant assets, net462,000405,000377,000 Total assets$1,904,000$1,645,000$1,473,000 Accounts payable$467,000$396,000$368,000 Long-term notes payable469,000399,000368,000 Share capital (100,000 issued)654,000605,000523,000 Retained earnings314,000245,000214,000 Total liabilities and equity$1,904,000$1,645,000$1,473,000
b) Assuming all other things are constant, indicate whether the vertical trend between cost of goods sold and sales is favourable or unfavourable.
The vertical trend is(select one).
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