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	$	1,475		$	1,291		$	1,175		$	1,077		$	1,005		$	935		$	766
Cost of goods sold		1,061			863			743			650			604			565			450
Gross profit		414			428			432			427			401			370			316
Operating expenses		316			247			227			167			145			143			119
Net income	$	98		$	181		$	205		$	260		$	256		$	227		$	197

HAROUN COMPANY
Comparative Balance Sheets
December 31, 2017–2011
($ thousands)	2017			2016			2015			2014			2013			2012			2011
Assets
Cash	$	122		$	162		$	168		$	172		$	178		$	176		$	182
Accounts receivable, net		880			924			836			641			565			535			378
Merchandise inventory		3,183			2,317			2,024			1,706			1,532			1,301			944
Other current assets		82			74			45			81			69			70			36
Long-term investments		0			0			0			251			251			251			251
Plant assets, net		3,894			3,879			3,395			1,914			1,979			1,759			1,509
Total assets	$	8,161		$	7,356		$	6,468		$	4,765		$	4,574		$	4,092		$	3,300
Liabilities and Equity
Current liabilities	$	2,051		$	1,725		$	1,131		$	941		$	817		$	772		$	498
Long-term liabilities		2,192			1,910			1,858			863			881			954			716
Common stock		1,485			1,485			1,485			1,320			1,320			1,155			1,155
Other paid-in capital		371			371			371			330			330			289			289
Retained earnings		2,062			1,865			1,623			1,311			1,226			922			642
Total liabilities and equity	$	8,161		$	7,356		$	6,468		$	4,765		$	4,574		$	4,092		$	3,300

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.)

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 %

omplete 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

Solution:

HAROUN COMPANY
Income Statement Trends
For Years Ended December 31, 2017–2011
($ thousands)	2017		2016		2015		2014		2013		2012		2011
Sales	$1,475.00	192.6%	$1,291.00	168.5%	$1,175.00	153.4%	$1,077.00	140.6%	$1,005.00	131.2%	$935.00	122.1%	$766.00	100%
Cost of goods sold	$1,061.00	235.8%	$863.00	191.8%	$743.00	165.1%	$650.00	144.4%	$604.00	134.2%	$565.00	125.6%	$450.00	100%
Gross profit	$414.00	131.0%	$428.00	135.4%	$432.00	136.7%	$427.00	135.1%	$401.00	126.9%	$370.00	117.1%	$316.00	100%
Operating expenses	$316.00	265.5%	$247.00	207.6%	$227.00	190.8%	$167.00	140.3%	$145.00	121.8%	$143.00	120.2%	$119.00	100%
Net income	$98.00	49.7%	$181.00	91.9%	$205.00	104.1%	$260.00	132.0%	$256.00	129.9%	$227.00	115.2%	$197.00	100%

HAROUN COMPANY
Balance Sheet Trends
December 31, 2017–2011
($ thousands)	2017		2016		2015		2014		2013		2012		2011
Assets
Cash	$122.00	67.0%	$162.00	89.0%	$168.00	92.3%	$172.00	94.5%	$178.00	97.8%	$176.00	96.7%	$182.00	100%
Accounts receivable, net	$880.00	232.8%	$924.00	244.4%	$836.00	221.2%	$641.00	169.6%	$565.00	149.5%	$535.00	141.5%	$378.00	100%
Merchandise inventory	$3,183.00	337.2%	$2,317.00	245.4%	$2,024.00	214.4%	$1,706.00	180.7%	$1,532.00	162.3%	$1,301.00	137.8%	$944.00	100%
Other current assets	$82.00	227.8%	$74.00	205.6%	$45.00	125.0%	$81.00	225.0%	$69.00	191.7%	$70.00	194.4%	$36.00	100%
Long-term investments	$0.00	0.0%	$0.00	0.0%	$0.00	0.0%	$251.00	100.0%	$251.00	100.0%	$251.00	100.0%	$251.00	100%
Plant assets, net	$3,894.00	258.1%	$3,879.00	257.1%	$3,395.00	225.0%	$1,914.00	126.8%	$1,979.00	131.1%	$1,759.00	116.6%	$1,509.00	100%
Total assets	$8,161.00	247.3%	$7,356.00	222.9%	$6,468.00	196.0%	$4,765.00	144.4%	$4,574.00	138.6%	$4,092.00	124.0%	$3,300.00	100%
Liabilities and Equity
Current liabilities	$2,051.00	411.8%	$1,725.00	346.4%	$1,131.00	227.1%	$941.00	189.0%	$817.00	164.1%	$772.00	155.0%	$498.00	100%
Long-term liabilities	$2,192.00	306.1%	$1,910.00	266.8%	$1,858.00	259.5%	$863.00	120.5%	$881.00	123.0%	$954.00	133.2%	$716.00	100%
Common stock	$1,485.00	128.6%	$1,485.00	128.6%	$1,485.00	128.6%	$1,320.00	114.3%	$1,320.00	114.3%	$1,155.00	100.0%	$1,155.00	100%
Other paid-in capital	$371.00	128.4%	$371.00	128.4%	$371.00	128.4%	$330.00	114.2%	$330.00	114.2%	$289.00	100.0%	$289.00	100%
Retained earnings	$2,062.00	321.2%	$1,865.00	290.5%	$1,623.00	252.8%	$1,311.00	204.2%	$1,226.00	191.0%	$922.00	143.6%	$642.00	100%
Total liabilities and equity	$8,161.00	247.3%	$7,356.00	222.9%	$6,468.00	196.0%	$4,765.00	144.4%	$4,574.00	138.6%	$4,092.00	124.0%	$3,300.00	100%