P12-1 Analyzlng Comparative Financlal Statements by Using...

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P12-1 Analyzlng Comparative Financlal Statements by Using Percentages L012-5 The comparative financlal statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: 'One-third was credit sales. touring Year 2 cash dividends amounting to $6,500 were declared and paid. "One-third was credit sales. tDuring Year 2 cash dividends amounting to $6.500 were declared and paid. Required: 1. Complete the following columns for each item in the preceding comparative financial statements (Negatlve answers should be Indicated by a minus sign. Round percentage answers to 2 decimal places (l.e., 0.1243 should be entered as 12.43 ).): 2-a. By what amount did working capital change? 2-b. What was the percentage change in the income tax rate? (Round intermedlote colculations and final onswer to 2 decimal pieces.)

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To analyze the comparative financial statements we need to calculate the increase or decrease in amounts and percentages for each item Lets go through this stepbystep 1 Complete the columns for each item Statement of Earnings Sales Revenue Year 1 279790 Year 2 320080 Increase 320080 279790 40290 Percentage 40290 279790 100 1440 Cost of Sales Year 1 232280 Year 2 270080 Increase 270080 232280 37800 Percentage 37800 232280 100 1627 Gross Margin Year 1 47510 Year 2 50000 Increase 50000 47510 2490 See Answer

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