Question

Selected comparative financial statements of Haroun Company follow.

HAROUN COMPANY
Comparative Income Statements
For Years Ended December 31, 2017–2011
($ thousands)	2017			2016			2015			2014			2013			2012			2011
Sales	$	1,550		$	1,357		$	1,235		$	1,132		$	1,056		$	982		$	805
Cost of goods sold		1,115			907			780			683			635			594			473
Gross profit		435			450			455			449			421			388			332
Operating expenses		332			260			238			176			152			150			125
Net income	$	103		$	190		$	217		$	273		$	269		$	238		$	207

HAROUN COMPANY
Comparative Balance Sheets
December 31, 2017–2011
($ thousands)	2017			2016			2015			2014			2013			2012			2011
Assets
Cash	$	119		$	157		$	163		$	166		$	173		$	171		$	176
Accounts receivable, net		853			896			811			622			548			519			366
Merchandise inventory		3,086			2,247			1,963			1,654			1,486			1,262			915
Other current assets		79			71			44			79			67			67			35
Long-term investments		0			0			0			243			243			243			243
Plant assets, net		3,777			3,762			3,291			1,857			1,918			1,706			1,465
Total assets	$	7,914		$	7,133		$	6,272		$	4,621		$	4,435		$	3,968		$	3,200
Liabilities and Equity
Current liabilities	$	1,989		$	1,673		$	1,097		$	913		$	792		$	749		$	483
Long-term liabilities		2,125			1,851			1,801			836			854			925			694
Common stock		1,440			1,440			1,440			1,280			1,280			1,120			1,120
Other paid-in capital		360			360			360			320			320			280			280
Retained earnings		2,000			1,809			1,574			1,272			1,189			894			623
Total liabilities and equity	$	7,914		$	7,133		$	6,272		$	4,621		$	4,435		$	3,968		$	3,200

Comp IS

Comp BS

Complete the below table to calculate the trend percents for all components of comparative income statements using 2011 as the base year.

	HAROUN COMPANY Income Statement Trends For Years Ended December 31, 2017–2011 2017 2016 2015 2014 2013 2012 2011 Sales % % % % % % 100.0 % Cost of goods sold 100.0 Gross profit 100.0 Operating expenses 100.0 Net income % % % % % % 100.0 %

Comp IS

Complete this question by entering your answers in the tabs below.

Comp IS

Comp BS

Complete the below table to calculate the trend percents for all components of comparative balance sheets using 2011 as the base year.

HAROUN COMPANY Balance Sheet Trends December 31, 2017–2011 2017 2016 2015 2014 2013 2012 2011 Assets Cash % % % % % % 100.0 % Accounts receivable, net 100.0 Merchandise inventory 100.0 Other current assets 100.0 Long-term investments 100.0 Plant assets, net 100.0 Total assets % % % % % % 100.0 % Liabilities and Equity Current liabilities % % % % % % 100.0 % Long-term liabilities 100.0 Common stock 100.0 Other paid-in capital 100.0 Retained earnings 100.0 Total liabilities & equity % % % % % % 100.0 %

Answer 1

HAROUN COMPANY
Income Statement Trends
For the year ended December 31, 2017-20177
	2017	2016	2015	2014	2013	2012	2011
Sales	192.5%	168.6%	153.4%	140.6%	131.2%	122.0%	100.0%
Cost of Goods Sold	235.7%	191.8%	164.9%	144.4%	134.2%	125.6%	100.0%
Gross Profit	131.0%	135.5%	137.0%	135.2%	126.8%	116.9%	100.0%
Operating Expenses	265.6%	208.0%	190.4%	140.8%	121.6%	120.0%	100.0%
Net Income	49.8%	91.8%	104.8%	131.9%	130.0%	115.0%	100.0%

HAROUN COMPANY
Comparative Balance Sheet Trends
December 31, 2017-20177
	2017	2016	2015	2014	2013	2012	2011
Assets
Cash	67.6%	89.2%	92.6%	94.3%	97.2%	97.2%	100.0%
Accounts Receivables, Net	233.1%	244.8%	221.6%	169.9%	141.8%	141.8%	100.0%
Merchandise Inventory	337.3%	245.6%	214.5%	180.8%	137.9%	137.9%	100.0%
Other Current Assets	225.7%	202.9%	125.7%	225.7%	191.4%	191.4%	100.0%
Long term Investments	0.0%	0.0%	0.0%	100.0%	100.0%	100.0%	100.0%
Plant assets, net	257.8%	256.8%	224.6%	126.8%	116.5%	116.5%	100.0%
Total Assets	247.3%	222.9%	196.0%	144.4%	124.0%	124.0%	100.0%
Liabilities and Equity
Current Liabilities	411.8%	346.4%	227.1%	189.0%	155.1%	155.1%	100.0%
Long-Term Liabilities	306.2%	266.7%	259.5%	120.5%	133.3%	133.3%	100.0%
Common Stock	128.6%	128.6%	128.6%	114.3%	100.0%	100.0%	100.0%
Other Paid-in Capital	128.6%	128.6%	128.6%	114.3%	100.0%	100.0%	100.0%
Retained Earnings	321.0%	290.4%	252.6%	204.2%	143.5%	143.5%	100.0%
Total Liabilities & equity	247.3%	222.9%	196.0%	144.4%	124.0%	124.0%	100.0%