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	$	2,780		$	2,435		$	2,215		$	2,030		$	1,895		$	1,762		$	1,444
Cost of goods sold		2,000			1,626			1,399			1,225			1,138			1,064			848
Gross profit		780			809			816			805			757			698			596
Operating expenses		595			465			427			315			273			269			224
Net income	$	185		$	344		$	389		$	490		$	484		$	429		$	372

HAROUN COMPANY
Comparative Balance Sheets
December 31, 2017–2011
($ thousands)	2017			2016			2015			2014			2013			2012			2011
Assets
Cash	$	137		$	181		$	189		$	192		$	200		$	197		$	204
Accounts receivable, net		986			1,036			938			719			633			600			423
Merchandise inventory		3,569			2,598			2,270			1,913			1,718			1,459			1,058
Other current assets		92			82			51			91			77			78			41
Long-term investments		0			0			0			281			281			281			281
Plant assets, net		4,366			4,350			3,804			2,147			2,219			1,973			1,693
Total assets	$	9,150		$	8,247		$	7,252		$	5,343		$	5,128		$	4,588		$	3,700
Liabilities and Equity
Current liabilities	$	2,302		$	1,936		$	1,270		$	1,057		$	917		$	867		$	559
Long-term liabilities		2,459			2,142			2,084			968			988			1,070			803
Common stock		1,665			1,665			1,665			1,480			1,480			1,295			1,295
Other paid-in capital		416			416			416			370			370			324			324
Retained earnings		2,308			2,088			1,817			1,468			1,373			1,032			719
Total liabilities and equity	$	9,150		$	8,247		$	7,252		$	5,343		$	5,128		$	4,588		$	3,700

Required:
1. Complete the below table to calculate the trend percents for all components of both statements using 2011 as the base year. (Round your percentage answers to 1 decimal place.)

Answer 1

HAROUN COMPANY
Income Statement Trends
For the year ended December 31, 2017-2011
	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	235.8%	191.7%	165.0%	144.5%	134.2%	125.5%	100.0%
Gross Profit	130.9%	135.7%	136.9%	135.1%	127.0%	117.1%	100.0%
Operating Expenses	265.6%	207.6%	190.6%	140.6%	121.9%	120.1%	100.0%
Net Income	49.7%	92.5%	104.6%	131.7%	130.1%	115.3%	100.0%

HAROUN COMPANY
Comparative Balance Sheet Trends
December 31, 2017-2011
	2017	2016	2015	2014	2013	2012	2011
Assets
Cash	67.2%	88.7%	92.6%	94.1%	98.0%	96.6%	100.0%
Accounts Receivables, Net	233.1%	244.9%	221.7%	170.0%	149.6%	141.8%	100.0%
Merchandise Inventory	337.3%	245.6%	214.6%	180.8%	162.4%	137.9%	100.0%
Other Current Assets	224.4%	200.0%	124.4%	222.0%	187.8%	190.2%	100.0%
Long term Investments	0.0%	0.0%	0.0%	100.0%	100.0%	100.0%	100.0%
Plant assets, net	257.9%	256.9%	224.7%	126.8%	131.1%	116.5%	100.0%
Total Assets	247.3%	222.9%	196.0%	144.4%	138.6%	124.0%	100.0%
Liabilities and Equity
Current Liabilities	411.8%	346.3%	227.2%	189.1%	164.0%	155.1%	100.0%
Long-Term Liabilities	306.2%	266.7%	259.5%	120.5%	123.0%	133.3%	100.0%
Common Stock	128.6%	128.6%	128.6%	114.3%	114.3%	100.0%	100.0%
Other Paid-in Capital	128.4%	128.4%	128.4%	114.2%	114.2%	100.0%	100.0%
Retained Earnings	321.0%	290.4%	252.7%	204.2%	191.0%	143.5%	100.0%
Total Liabilities and equity	247.3%	222.9%	196.0%	144.4%	138.6%	124.0%	100.0%