Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021-2015 ($ thousands) Sales 2021 Cost of goods sold $ 1,769 1,271 2020 $ 1,549 2019 2018 2017 2016 2015 $ 1,410 $ 1,292 $ 1,206 $ 1,121 $ 919 1,034 889 778 723 676 539 Gross profit 498 515 521 514 483 445 380 Operating expenses Net income 377 295 271 200 173 171 142 $ 121 $ 220 $ 250 $ 314 $ 310 $ 274 $ 238 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021-2015 ($ thousands) Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets Liabilities and Equity 2021 2020 2019 2018 2017 2016 2015 $ 108 773 $ 142 812 $ 148 735 2,797 2,036 1,779 $ 151 564 1,499 $ 157 496 $ 155 $ 160 470 332 1,346 1,144 829 72 65 40 71 60 61 32 e B 220 220 220 220 3,422 3,409 2,982 1,683 $ 7,172 $ 6,464 $ 5,684 $ 4,188 $ 4,019 1,740 1,546 $ 3,596 $ 2,900 1,327 Current liabilities 1,804 Long-term liabilities 1,926 Common stock 1,305 $ 1,517 1,678 1,305 $ 995 1,632 1,305 $ 828 758 1,160 $ 718 774 $ 679 838 $ 438 629 1,160 1,015 1,015 Other paid-in capital 326 Retained earnings 1,811 326 1,638 326 1,426 290 1,152 290 1,077 254 254 810 564 Total liabilities and equity $ 7,172 $ 6,464 $ 5,684 $ 4,188 $ 4,019 $ 3,596 $ 2,900 Required: 1. Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year. 2. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did Inventory Increase over this period? Complete this question by entering your answers in the tabs below. Required 1 Comp IS Required 1 Comp BS Required 2 Complete the below table to calculate the trend percents for all components of comparative income statements using 2015 as the base year. Note: Round your percentage answers to 1 decimal place. Sales Cost of goods sold Gross profit Operating expenses Net income HAROUN COMPANY Income Statement Trends For Years Ended December 31, 2021-2015 2021 2020 2019 2018 2017 2016 2015 % 96 96 96 96 96 100.0 % 100.0 100.0 100.0 % 96 96 96 96 % 100.0 %
Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021-2015 ($ thousands) Sales 2021 Cost of goods sold $ 1,769 1,271 2020 $ 1,549 2019 2018 2017 2016 2015 $ 1,410 $ 1,292 $ 1,206 $ 1,121 $ 919 1,034 889 778 723 676 539 Gross profit 498 515 521 514 483 445 380 Operating expenses Net income 377 295 271 200 173 171 142 $ 121 $ 220 $ 250 $ 314 $ 310 $ 274 $ 238 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021-2015 ($ thousands) Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets Liabilities and Equity 2021 2020 2019 2018 2017 2016 2015 $ 108 773 $ 142 812 $ 148 735 2,797 2,036 1,779 $ 151 564 1,499 $ 157 496 $ 155 $ 160 470 332 1,346 1,144 829 72 65 40 71 60 61 32 e B 220 220 220 220 3,422 3,409 2,982 1,683 $ 7,172 $ 6,464 $ 5,684 $ 4,188 $ 4,019 1,740 1,546 $ 3,596 $ 2,900 1,327 Current liabilities 1,804 Long-term liabilities 1,926 Common stock 1,305 $ 1,517 1,678 1,305 $ 995 1,632 1,305 $ 828 758 1,160 $ 718 774 $ 679 838 $ 438 629 1,160 1,015 1,015 Other paid-in capital 326 Retained earnings 1,811 326 1,638 326 1,426 290 1,152 290 1,077 254 254 810 564 Total liabilities and equity $ 7,172 $ 6,464 $ 5,684 $ 4,188 $ 4,019 $ 3,596 $ 2,900 Required: 1. Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year. 2. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did Inventory Increase over this period? Complete this question by entering your answers in the tabs below. Required 1 Comp IS Required 1 Comp BS Required 2 Complete the below table to calculate the trend percents for all components of comparative income statements using 2015 as the base year. Note: Round your percentage answers to 1 decimal place. Sales Cost of goods sold Gross profit Operating expenses Net income HAROUN COMPANY Income Statement Trends For Years Ended December 31, 2021-2015 2021 2020 2019 2018 2017 2016 2015 % 96 96 96 96 96 100.0 % 100.0 100.0 100.0 % 96 96 96 96 % 100.0 %
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 48CE
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Transcribed Image Text:Selected comparative financial statements of Haroun Company follow.
HAROUN COMPANY
Comparative Income Statements
For Years Ended December 31, 2021-2015
($ thousands)
Sales
2021
Cost of goods sold
$ 1,769
1,271
2020
$ 1,549
2019
2018
2017
2016
2015
$ 1,410
$ 1,292
$ 1,206
$ 1,121
$ 919
1,034
889
778
723
676
539
Gross profit
498
515
521
514
483
445
380
Operating expenses
Net income
377
295
271
200
173
171
142
$ 121
$ 220
$ 250
$ 314
$ 310
$ 274
$ 238
HAROUN COMPANY
Comparative Year-End Balance Sheets
December 31, 2021-2015
($ thousands)
Assets
Cash
Accounts receivable, net
Merchandise inventory
Other current assets
Long-term investments
Plant assets, net
Total assets
Liabilities and Equity
2021
2020
2019
2018
2017
2016
2015
$ 108
773
$ 142
812
$ 148
735
2,797
2,036
1,779
$ 151
564
1,499
$ 157
496
$ 155
$ 160
470
332
1,346
1,144
829
72
65
40
71
60
61
32
e
B
220
220
220
220
3,422
3,409
2,982
1,683
$ 7,172
$ 6,464
$ 5,684
$ 4,188
$ 4,019
1,740
1,546
$ 3,596
$ 2,900
1,327
Current liabilities
1,804
Long-term liabilities
1,926
Common stock
1,305
$ 1,517
1,678
1,305
$ 995
1,632
1,305
$ 828
758
1,160
$ 718
774
$ 679
838
$ 438
629
1,160
1,015
1,015
Other paid-in capital
326
Retained earnings
1,811
326
1,638
326
1,426
290
1,152
290
1,077
254
254
810
564
Total liabilities and equity
$ 7,172
$ 6,464
$ 5,684
$ 4,188
$ 4,019
$ 3,596
$ 2,900
Transcribed Image Text:Required:
1. Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year.
2. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over
the past four years? (c) Did Inventory Increase over this period?
Complete this question by entering your answers in the tabs below.
Required 1
Comp IS
Required 1
Comp BS
Required 2
Complete the below table to calculate the trend percents for all components of comparative income statements using 2015 as the base year.
Note: Round your percentage answers to 1 decimal place.
Sales
Cost of goods sold
Gross profit
Operating expenses
Net income
HAROUN COMPANY
Income Statement Trends
For Years Ended December 31, 2021-2015
2021
2020
2019
2018
2017
2016
2015
%
96
96
96
96
96
100.0 %
100.0
100.0
100.0
%
96
96
96
96
%
100.0 %
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