Whale Corporation’s condensed comparative balance sheets and condensed comparative income statements for 2012 and 2011 follow.

REQUIRED

1. Prepare schedules showing the amount and percentage changes from 2011 to 2012 for the comparative income statements and the balance sheets.

2. Prepare common-size income statements and balance sheets for 2011 and 2012.

3. Comment on the results in 1 and 2 by identifying favorable and unfavorable changes in the components and composition of the statements.

Transcribed Image Text:

Whale Corporation Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets Cash Accounts recelvable (net) $ 81,200 235,600 574,800 750,000 $1,641,600 $40,800 229,200 594,800 720,000 $1,584,800 Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity 477,200 400,000 Accounts payable Notes payable (short-term) Bonds payable Common stock, $10 par value Retained earnings Total liabilities and stockholders' equity 267,600 200,000 400,000 400,000 374,000 $1,641,600 400,000 307,600 $1,584,800 Whale Corporation Comparative Income Statements For the Years Ended December 31, 2012 and 2011 2012 2011 Net sales Cost of goods sold Gross margin Operating expenses $3,276,800 2,088,800 $1.188,000 $3,146,400 2,008 400 51138,000 $ 518,000 423,200 $ 941,200 S 196,800 39.200 157,600 56,800 $ 100800 $ 2.52 Selling expenses $476,800 447,200 5 924,000 264,000 65,600 198400 Administrative expenses Total operating expenses Income from operations Interest expense Income before income taxes Income taxes expense Net income Eamings per share S 136,000 $3.40