The comparative financial statements prepared at December 31, 2012, for Prince Company showed the following summarized data:

*One-third was credit sales.
†During 2012, cash dividends amounting to $3,000 were declared and paid.
Required:
1. Complete the following columns for each item in the preceding comparative financial statements:
INCREASE (DECREASE)
2012 OVER 2011
Amount Percent
2. By what amount did working capitalchange?

Transcribed Image Text:

2011 2012 Income Statement $190,000* $167,000 Sales revenue Cost of goods sold 112,000 100,000 Gross profit Operating expenses and interest expense 78,000 67,000 56,000 53,000 Pretax income 22,000 8,000 14,000 Income tax 4,000 $ 14,000 $ 10,000 Net income Balance Sheet $ 7,000 18,000 $ 4,000 14,000 40,000 Cash Accounts receivable (net) Inventory Operational assets (net) 34,000 45,000 38,000 $ 97,000 $ 17,000 45,000 30,000 $103,000 $ 16,000 45,000 30,000 Current liabilities (no interest) Long-term liabilities (10% interest) Common stock (par $5) Retained earnings 5,000 12,000 $ 97,000 $103,000