XYZ COMPANY Income Statement For the Years Ending December 31, 2013 & 2012 2013 2012 Sales 4,938,750 4,410,000 Sales returns and allowances 220,500 276,750 Net sales 4,718,250 4,133,250 Cost of goods sold 2,882,250 2,565,000 Gross profit 1,836,000 1,568,250 Selling expenses 569,250 475,875 Administrative expenses 612,450 556,875 Total operating expenses 1,181,700 1,032,750 Income from operations 654,300 535,500 Interest expense 60,750 66,375 Net income 593,550 469,125 2012 XYZ COMPANY Statement of Financial Position As of December 31, 2013 & 2012 2013 Assets Intangible assets 33,750 Equipment 1,912,500 Accumulated depreciation (112,500) Prepaid expenses 112,500 Inventory 1,395,000 Accounts receivable 517,500 Short-term investments 45,000 Cash 225,000 Total current assets 2,295,000 Total Assets 4,128,750 Equity & Liabilities Share capital 619,650 Retained earnings 1,637,100 Total Equity 2,256,750 Noncurrent liabilities 1,096,875 Current liabilities 775,125 Total liabilities 1,872,000 Total Equity & Liabilities 4,128,750 39,375 1,513,125 (90,000) 90,000 1,125,000 405,000 157,500 348,750 2,126,250 3,588,750 607,500 1,181,250 1,788,750 1,118,250 681,750 1,800,000 3,588,750 ANSWERS 1 What was the percentage change (horizontal analysis) of Sales? 2 What was the percenage change in Inventory? 3 What was the percentage change in Total Equity? 4 What was the percentage change in Current Liabilities