FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Required:
1. Complete the following columns for each item in the comparative financial statements (Negative answers shoul
be indicated by a minus sign. Round percentage answers to 2 decimal places, i.e., 0.1243 should be entered as
12.43.):
Increase (Decrease)
Year 2 over Year 1
Amount
Percentage
Statement of earnings:
Sales revenue
Cost of sales
Gross margin
Operating expenses and interest expense
Earnings before income taxes
Income tax expense
Net earnings
$
45,770
38,650
7,120
4,020
3,100
1,050
$
2,050
Statement of financial position:
Cash
(4,720)
Accounts receivable (net)
(4,220)
Inventory
6,200
Property, plant, and equipment (net)
6,380
$
3,640
Current liabilities
(3,840)
Long-term debt
3,530
Common shares
0
Retained earnings
3,950
$
3,640
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