Golden Corporation declared and paid $4,600 of cash dividends during the current year ended December 31. Its financial statementsalso reported the following summarized data:Required:1. Complete the horizontal analyses for each item in Golden Corporation's comparative financial statements. TIP: Calculate theincrease (decrease) by subtracting the previous year from the current year. Calculate the percentage by dividing the amount ofincrease (decrease) by the previous-year balance. (Decreases should be indicated by a minus sign. Round percentage values to1 decimal place.)2-a. Use the horizontal (trend) analyses to identify the accounts where a large percentage change is accompanied by a small dollarchange. (You may select more than one answer. Single click the box with the question mark to produce a check mark for acorrect answer and double click the box with the question mark to empty the box for a wrong answer.)2-b. Use the horizontal (trend) analyses to identify the accounts where a directional change in one account balance is inconsistent withthe directional change in a related account balance. (You may select more than one answer. Single click the box with thequestion mark to produce a check mark for a correct answer and double click the box with the question mark to empty thebox for a wrong answer.)Complete this question by entering your answers in the tabs below.Required 1 Required 2A Required 2BComplete the horizontal analyses for each item in Golden Corporation's comparative financial statements. TIP: Calculate theincrease (decrease) by subtracting the previous year from the current year. Calculate the percentage by dividing the amountof increase (decrease) by the previous-year balance. (Decreases should be indicated by a minus sign. Roundpercentage values to 1 decimal place.)Income StatementSales revenueCost of goods soldGross profitOperating expensesInterest expenseIncome before income taxesIncome tax expenseNet incomeBalance SheetCashAccounts receivable (net)InventoryProperty and equipment (net)Total AssetsCurrent liabilitiesNotes payable (long-term)Common stock (par $5)Additional paid-in capitalRetained earningsTotal liabilities & stockholders' equityGOLDEN CORPORATIONHorizontal AnalysisCurrent$ 196,000 $ 176,200118,000106,40078,00069,80056,5004,30017,200$Previous$6,40010,800 $3,100 $52,0004,04013,7604,6009,1607,10020,60022,40038,50036,60043,20035,500$ 105,400 $ 101,600$15,400 $ 17,80051,00051,00024,00024,0004,4004,40010,6004,400$ 105,400 $101,600Increase (Decrease)in Current (versus Previous)AmountPercentage%%%%%%%%Show less A%%%%%%%%%%%

The comparative financial statement analysis done by comparing the figure of 1 to the previous year…

marized data: alyses for each item in Golden Corporation's comparative financial statements. TIP: Calculate the racting the previous year from the current year. Calculate the percentage by dividing the amount of previous-year balance. (Decreases should be indicated by a minus sign. Round percentage values to nalyses to identify the accounts where a large percentage change is accompanied by a small dollar ore than one answer. Single click the box with the question mark to produce a check mark for a e click the box with the question mark to empty the box for a wrong answer.) nalyses to identify the accounts where a directional change in one account balance is inconsistent with related account balance. (You may select more than one answer. Single click the box with the a check mark for a correct answer and double click the box with the question mark to empty the y entering your answers in the tabs below. quired 2B es for each item in Golden Corporation's comparative financial statements. TIP: Calculate the ting the previous year from the current year. Calculate the percentage by dividing the amount revious-year balance. (Decreases should be indicated by a minus sign. Round mal place.) GOLDEN CORPORATION Horizontal Analysis Current 699 $ 196,000 $ 176,200 118,000 106,400 78,000 69,800 56,500 52,000 4,300 4,040 17,200 6,400 10,800 $ $ $ Previous 3,100 $ 20 600 13,760 4,600 9,160 7,100 22 400 Increase (Decrease) in Current (versus Previous) Amount Percentage % % % % % % % % % Show less %

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...