PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus Previous year) Current Year Previous...

PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus Previous year) Current Year Previous Year Amount Percentage Income Statement Sales Revenue $120,000 $106,000 % Cost of Goods Sold 54,000 49,000 Gross Profit 66,000 57,000 Operating Expenses 41,000 35,500 Interest Expense 5,000 5,000 Income before Income Tax Expense 20,000 16,500 Income Tax Expense (30%) 6,000 4,950 Net Income $14,000 $11,550 % Balance Sheet Cash $77,900 $43,000 % Accounts Receivable, Net 19,000 10,000 Inventory 26,000 40,000 Property and Equipment, Net 96,000 110,000 Total Assets $218,900 $203,000 % Accounts Payable $44,000 $36,000 % Income Tax Payable 3,000 1,500 Note Payable (long-term) 50,000 50,000 Total Liabilities 97,000 87,500 Common Stock (par $10) 87,000 87,000 Retained Earnings† 34,900 28,500 Total Liabilities and Stockholders’ Equity $218,900 $203,000 % †During the current year, cash dividends amounting to $7,600 were declared and paid.

Expert Solution

Horizontal Analysis
Income Statement
Increase (Decrease) in the Current year (versus Previous year)
	Current Year	Previous Year	Amount	%
1	2	3	4=(2-3)	5=(4/3)
Sales Revenue	120000	106000	14000	13.21%
Less: COGS	54000	49000	5000	10.20%
Gross profit	66000	57000	9000	15.79%
Less: Operating expenses	41000	35500	5500	15.49%
Less:Interest expense	5000	5000	0	0.00%
Income before Income-tax expense	20000	16500	3500	21.21%
Less: Income Tax expense(30%)	6000	4950	1050	21.21%
Net Income	14000	11550	2450	21.21%

Balance Sheet
	Current Year	Previous Year	Amount	% change from previous year
Assets
Cash	77900	43000	34900	81.16%
Accounts Receivables,net	19000	10000	9000	90.00%
Inventory	26000	40000	-14000	-35.00%
PP&E, Net	96000	110000	-14000	-12.73%
Total Assets	218900	203000	15900	7.83%

Liabilities & Stockholders' Equity
Accounts Payable	44000	36000	8000	22.22%
Income Tax payable	3000	1500	1500	100.00%
Note payable(long-term)	50000	50000	0	0.00%
Total Liabilities	97000	87500	9500	10.86%
Common stock(par $ 10)	87000	87000	0	0.00%
Retained Earnings	34900	28500	6400	22.46%
Total stockholders' equity	121900	115500	6400	5.54%
Total liabilities & Stockholders' Equity	218900	203000	15900	7.83%

ekkarill92 answered 2 years ago

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